HI needed to know, can i buy a car in My individual Name where the cheque is paid by my partnership firm, where all the expences / maintainence and the depriciation shall be claimed by my firm.
---- Can that sepcific amount be treated as tax free Loan given to Partner, (other loans continue to get Interest)
--- At the time of sale of the Car do i have to sell in Individual name (without VAT and the remitence deposited in the Company) or does the company sell the car with VAT @ 12.5%???
THnx...
yes, you can buy the car in your name where beneficial owner is the firm. Instead of taking the interest free loan make the payment from the firm itself.
At the time of sale cap gain will arise to firm and yes VAT would be applicable.
'
The firm will be the beneficial owner.
Regards
Piyush
Mr.Ketan
and
Mr.Piyush Jain
Please refer section 14 of the Indian Partnership Act, 1932. Your doubts will be clarified. Though the car is purchased in the name of a partner, it can be treated as the asset of the firm and the firm can claim deprectiaiton.
With Best Wished
Sathikonda
Mr.Ketan
and
Mr.Piyush Jain
I am herewith attaching a list of case laws use for you in the matter of claiming depreciation on vehicle registered in the name of a partner.
Best Wishes
Sathikonda
| Originally posted by :sathikonda anumanchipalli | ||
| " | Mr.Ketan and Mr.Piyush Jain I am herewith attaching a list of case laws use for you in the matter of claiming depreciation on vehicle registered in the name of a partner. Best Wishes Sathikonda |
" |
Thanx a lot Mr. Piyush & Mr. Sathikonda... To sum it all
I Shall buy a car in my name Payed by my Firm, who can claim the Depriciation & maintainence, @ at the time of sale the car shall be sold by the Firm with VAT at the prevaling rate.
Mr.Ketan
and
Mr.Piyush Jain
Please note that the car must be shown as an asset of the firm.
With Best Wishes
Sathikonda
CAclubindia
