Updated Online video classes available for CA,CS,CMA for May20 and Nov20 batch. Call: 1800-3000-0505

bought a new car


m baul (service)     30 August 2019

m baul
service 
 1 likes  56 points

| My Other Post

Dear Sir,

I bought a new car for business as well as personal perpose with bank finance . Can I saw this car in Balance sheet and can I claim depreciation.

pl.suggest


thanks

avater

Kapadia Pravin   30 August 2019

Kapadia Pravin

 892 likes  13850 points

View Profile | My Other Post

You can show but to the extent %age use towards personal use will be disallowed from expenditure viz. Interest on car loan, Depreciation, Maintenance cost etc

avater

Shivam RC (Student)     30 August 2019

Shivam RC
Student 
 1669 likes  13684 points

View Profile | My Other Post

Agree with Kapadia Pravin Sir's explanation...

Personal Expenditure cannot be allowed as deduction under Income Tax Act 1961

avater

Giridhar S Karandikar (Team Lead)     31 August 2019

Giridhar S Karandikar
Team Lead 
 715 likes  6933 points

View Profile | My Other Post

practically speaking car which is purchased for business purposes is also used for personal purpose as well. so as per usual practice, entire depreciation can be shown for business purposes. however if at all your case comes up for scrutiny you can substantiate by showing that how car is being used for business purposes by producing adequate documents for expenses incurred

DomingoSpear (Owner)     17 September 2019

DomingoSpear
Owner 
 22 points

View Profile | My Other Post

You can create Depreciation Reserve under Fixed asset , You can Reduce the value of the car, but you can not claim depreciation if you are not using for Business. In any case, if in the future you need car parts, then look on the boodmo , the same ac compressor could be found there, and the prices there are very good. https://boodmo.com/catalog/3555-compressor/


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Popular Discussion


view more »