Dear All
We are Pvt. Ltd. company want to buy a car worth of 18 lakh and want to transfer the same to one of our director after three years. Requesting you to please clarify following questions.
1. Can we buy a car and transfer this to one of our director after three years ?
2. Can we transfer the car for less than its book value after three years?
3. Is this transfer taxable in the hands of the director?
Appreciate your valuable reply. Thanks!
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Motor car
Replies (1)
Yes, the company can purchase the car and it can claim depreciation also if used for business purposes. It can be sold at any price and capital gain also won't arise. But if the director is in the capacity of employee it will be taxed in the hands of director as perquisite under salary otherwise under PGBP. Please do cross verify with others too.
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