vinayak (accountant) (255 Points)
16 April 2015WE have purchased car in the name of director of company. Payment has been done from our private limited company accounts. How VAT (12.5%) will be calculated on this car purchase while filling return for VAT (six monthly)? How much input of VAT can we claim?
CA Amit K. Ganar
(Practicing FCA)
(146 Points)
Replied 22 April 2015
VAT on sar is specifically disallowed under rule 54(a). Do not dare to take set off at all.
Secondly when car is on name of director, how a company can take set off of the car when the invoice is not raised on company? even though the company paid amount on behalf of director.
These payments will be considered as advance to director or payment against salary.
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