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What if directors purchases a laptop on company's name?

bhargava (marketing) (55 Points)

15 December 2011

one very important question. a director of a pvt ltd company purchased a laptop by payment through his credit card. but the bill of the laptop was made on company's name. who is the real owner of the laptop? company or the director?

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7 Replies

vinay (Chartered Accountant) (46 Points)
Replied 15 December 2011

Company

CA. Gopi Vijayaragavan (CA in Service) (70 Points)
Replied 15 December 2011

Dear Bhargava,

Company will be treated as owner,if the invoice is raised in its name and the consideration paid by the director from his credit card has been reimbursed to him.

Abhay Sakaria ([Practicing C.A.] [C.S. Final]) (283 Points)
Replied 15 December 2011

If bill is in the name of company then the real owner of laptop will be company and not the director.

bhargava (marketing) (55 Points)
Replied 15 December 2011

Originally posted by : Abhay Sakaria
	If bill is in the name of company then the real owner of laptop will be company and not the director.

What if the money was not reimbursed to the director for the same? still the company owns the laptop?

CA. Gopi Vijayaragavan (CA in Service) (70 Points)
Replied 15 December 2011

If the company is not reimbursed the amount or it is not liable to reimburse as per the terms between the company and director, it will be treated as gift received by the company from the director. Hence, still in such case, company will be the owner.

Also, here the seller has transfered the rights in the property to the company only though the payment has been made by the director from his personal funds. Hence, company will be the true owner of the property.

Charu Srivastava (Company Secretary) (4210 Points)
Replied 15 December 2011

No. doubt company is the owner of the Computer because the Company enjoys separate entity unless there is a agreement between the Director and the Company otherwise..

CA Kiran Sutrave (CA) (428 Points)
Replied 15 December 2011

Here the Company is the real owner of the laptop even if the amount is not reimbursed to the Director, since the invoice is in the name of the Company.

It is also necessary to check here is that whether the laptop was purchased for personal use or for official purpose. Treatment will depend accordingly.