Dear All,
Please clarify whether depreciation on vehicle in the name of a director of a company is allowable under section 32 if it is used for both business and personal purpose
Anand
ANAND U PATANKAR (CHARTERED ACCOUNTANT) (68 Points)
20 March 2009Dear All,
Please clarify whether depreciation on vehicle in the name of a director of a company is allowable under section 32 if it is used for both business and personal purpose
Anand
Abhinav Agarwal
(M.Com C.A SAP Consultant)
(814 Points)
Replied 20 March 2009
You can't claim depreciation in the books of company for director's personal vehicle.
However, if you take an undertaking from that director & company that such vehicle will be wholely used by company for official purpose, Dep can be claimed, considering consideration & TDS provisions.
Atul Kumar
(CA)
(504 Points)
Replied 24 April 2009
Depreciation can't be calimed by the company unless it is capitalised in the bokks of company.
vijay
(.)
(212 Points)
Replied 26 April 2009
Mr. Anand
If the Car is shown in the books under the head Fixed Assets then you have to claim depreciation at is compulsory to claim depreciation.
Regards
Vijay Kumar
deepak K Gujrati
(CA-practice)
(966 Points)
Replied 26 April 2009
If the car is capitalised in the books of the company, [ hope the payment has been made by the company and name of the company is also mentioned on the invoice ] the company will claim depreciation and it will be an allwable expense even if it is partly used for personal purposes also.
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 02 May 2009
If V go as per Mr. Deepak and as per term of agreement between company and the director dep. can be claimed adn further FBT will be calculated.
CA Akhilesh Mundra
(Chartered Accountant)
(76 Points)
Replied 03 May 2009
No, company can't claim the depreciation. The same is held in various case law held by the different authorities
Seetha
(B.Com, CA)
(278 Points)
Replied 03 May 2009
Dear sirs,
if suppose the above mentioned person has a personal business apart from being director of a company; and he transfers the car which he was using for his personal business and his personal use to the company the will capital gain be applicable ( as car is personal effect)?
thanx
CAclubindia
