Accounting

if the vehicle is purchased for the business purpose (income) than obviously it must be shown in the assets side of balance sheet...whether the asset derives any income or not...

If the person is purchasing the vehicle for Vehicle Hire business than it cannot be shown as asset, since he is using the same for regular business activity.

@ gemina...which accounting rule is applicable???

Hi vardhan sir

                    Vehicle is deriving income,but it is used in regular business activity i.e,main business activity.So How Can i show it as an asset?

AS YOU SAY HE PURCHASE VEHICLE FOR BUSINESS ITS BUSINESS ASSETS.

SO CONCLUSION IS THAT YOU SHOULD SHOW THAT AS A ASSET.

i agreed with IMAM.

HE HAS HIRING OF VEHICLE SO ITS NOT STOCK IN TRADE ITS ACTUALLY HIS PROPERTY/ASSET SO SIR YOU HAVE TO SHOW IT AS ASSET

VISHWAM WHERE YOU FROM ? IF YOU NEED DIRECT GUIEDANCE THEN I CAN GIVE MY CELL NO.IF YOU WANT

@ GEMINA....FOR E.G. SUPPOSE YOU STARTED YOUR OWN BUSINESS OF TOURS & TRAVELS AND IF YOU ARE PROVIDING CARS & BUSES ON RENTALS TO OTHER THAN YOU SHOULD APPLY SERICE TAX TOO ON SUCH SERVICE ON THE OTHER HAND IF YOU ARE PURCHASING SUCH ASSETS FOR BUSINESS EXPANSION OR A STARTUP AS THE CASE MAY BE...YOU SHOUL SHOW IT ON THE ASSET SIDE OF THE B/S...ON THE OTHER HAND DEPRECIATION IS ALSO APPLICABLE..

Thank you vardhan sir,and imam sir.Should all chairs and tents in shamiyana business be treated as fixed assets?

SHAMIYANA BUSINESS MEANS ????? EXPLAIN IN DETAIL

it means tent hirers.i.e,hiring tents for functions and marriages like event management companies

OBVIOUSLY THAN ALL CHAIRS & TENTS ARE ASSETS OF THE MANDAP KEEPER OR THE CATERER AS THE CASE MAY BE.

Could you please tell me the depreciation rate as per IT Act