We are transport pvt ltd company. We have purchased new buses around 60L and paid road tax.
Now my doubt is we take the bus puchase cost for expense or fixed asset. How to pass entry. Pls suggest and road tax under which leader duties and taxes or rates and taxes..
Thanks in advance
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Transport Pvt ltd company
Replies (2)
The cost of the buses should be treated as assets of the Company this is the fixed assets which generate the revenue earning in ordinary course of business.
For tax i have no idea.
In case if you are in business of selling buses, then you should consider it as an expense. Now, as your business is providing transportation service, cost incurred for procuring bus including taxes has to be captialised (Fixed Asset).
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