A Vehicle financed by financial instituttion and ownership of vehicle is in the employee's name but the EMI of loan taken is paid by the company.
In such case can a Pvt Ltd company claim depreciation on that vehicle ??
If yes, suggest the journal entries..
If No, what would be the status of EMI's paid to Financial Institutuin on behalf of employee.??
Could you please tell which depreciation you are talking about? Companies' Act depreciation or Income Tax?
EMI paid to financial institution on behalf of the employee shall be considered as perquisite and will be taxable as in the hands of Employee. It should be considered as part of their salary.
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