Please Help: depreciation on Luxury Car
Posted Date : 04-Jan-2013 , 03:58:06 pm | Posted By Nikhil
Can a pvt ltd company claim depreciation on Car which is purchased in the name of Company but not used for the purpose of Buisiness.
Category : Accounts | Answers : 1 | Comments : 7 | Hits : 251
Answers
Answer By: CA Satuti Mahajan
yes
Comments
ashish pandey
04-Jan-2013 , 09:04:18 pmThere are different situations to handle this query, in general that portion should be debited to the profit and loss account with are actually related to the business purpose of the assessee. However 100% depreciation can be claimed on the car.
Roopak
05-Jan-2013 , 01:01:33 pmYou can claim depreciation but if the AO finds that it is used for personal purpose of director or employees, he may invoke section 14A to disallow the same. Roopak Singh Future CA 9953144882
Dilbagh
05-Jan-2013 , 06:30:14 pmno..company can claim dep on the asset which is used for business purposes
Amit Goyal
25-Jan-2013 , 04:24:07 pmNo, Company can take the claim the Dep on Car only for business purpose. As per section 32 of IT act The assests in respect of which dep. is claimed must have been used for the purpose of business.
naga rakesh
28-Jan-2013 , 12:08:39 pmYES BECAUSE IT WAS PURCHASED IN THE NAME OF THE COMPANY
Raju
01-Feb-2013 , 11:44:09 pmyes
Neeraj Tiwari
01-Mar-2013 , 05:26:43 pmU/s 32 of Income tax act to claim depreciation of any fixed asset it must be used for Business purpose. So mere purchasing in name of company will not entitle car for depreciation.