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Demo Vehicle

Amit Jain (Proprietor ) (538 Points)

26 October 2019

Whether Demo Bike is to be shown as stock or fixed? And if shown as fixed assets whether we claim GST input

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 26 October 2019

What is Your business...?

Amit Jain (Proprietor ) (538 Points)
Replied 26 October 2019

Royal Enfield bullet showroom

Manjeet goswami (22 Points)
Replied 26 October 2019

Will be shown as stock and itc of gst will be available whether it is capital asset or input

Amit Jain (Proprietor ) (538 Points)
Replied 26 October 2019

Company asked to keep the demo bike for two and half years. So whether it will not be treated as fixed assets

Manjeet goswami (22 Points)
Replied 26 October 2019

No issue stock can also be kept for longer unless it is of perishable nature

Kapadia Pravin (17264 Points)
Replied 26 October 2019

@ Amit
is it so that you keeping demo bike on behalf of Company or you paid for it ?

Are you going to return bike after 30 months ?

If you paid for it then who will bear wear and tear for 2.5 years ?

How is disposal terms for bike after 2.5 years

Depending upon terms of distributor You may keep as FA and claim depreciation on it.