if a company buy a car but due to bank issue car is purchased in the name of a director but car is used only for company.
in this situation who charged the depreciation?
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Who charge Depreciation?
Replies (11)
Quick Summary
Depreciation is allowable only to the owner of the asset. In case of co-ownership, depreciation is allowable in ratio of their ownership. This means, tax depreciation can be claimed by your owner if he purchased it from his account. No transfer the company money to his account and the company is entitled for depreciation.
Even though Car is used for Company , however Invoice is in the name of Director you can't show Car as an asset in the Books of Accounts of the Company . Invoice should be in the name of Company in order to enter in the Books of accounts of the Company , it is important for Audit purpose . Others opinion is also requested.
My opinion above was the same and legal documentation can be used to transfer the asset into company name by transferring money from company account to directors account.
But if same question is as per Income tax then your answer??
Tax depreciation cannot be strictly claimed. @ Abhishek Kumar . Next, transfer of property will take place within one year or else, the company can never claim depreciation
As the owner of car is director, depreciation allowed to him only. Company can't claim depreciation.
However company can claim reimbursement expenses paid to director for expenses of car if any borne by company.
However company can claim reimbursement expenses paid to director for expenses of car if any borne by company.
Can used machinery purchased? Is there any tax law that new machinery is carried and not second hand? If not, simple transfer of ownership will be sufficient.
There is no rule of new machinery, you can claim depreciation on old machine also
Txs. Company can acquire the asset at lower of cost or fvlcd. RTA India can transfer registration to company name. Nrv is going to win because no value for seconds even after a months usage. The company can include this as an opportunity cost embedded into product price
I meant more depreciation can be claimed at cost
Depreciation claimed at cost, so if there is more value you can claim more depreciation
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