Dear Members,
Recently my company has received a cars through sales schemes, but the car is ment to be used by the sale person who is working, though the car is registered in the name of our company.
Now, as we have received the cars under the scheme, will this be treated as taxable income & can these cars be treated as company`s asset. As the car is ment to be used by the sales person and also the car is a sort of special incentive to him, even though the registration of the car remained in the name of our company to keep him bound with our company, as this car has been gifted, the company is reluctant to pay the tax which may or may not be lavied to the company & also to increase the asset value.
What could be the possible accounting solution to the problem & also the accounting entries.
Havn`t yet found any solution to the problem. Pls help....
Regards
AVI...
CAclubindia
