I started a Private limited company (Oct 2016). I want to buy a car on my company name. As my company is new I will not get loan on my company name to buy car.
If I loan money from my friends on my company name, can I use it to buy the car with full cash and show as expenses and the interest I am paying to my friends also as expense. Any cap limit for this.
Or, If I have 10 lakhs profit from my business and I use that 10 lakhs money to buy a car in cash, can I show that 10 lakhs as expense. Any cap limit for this.
Please explain me how this works and any better options for me.
Appreciate your help.
CAclubindia
