Buying a new vehicle

This query is : Resolved

PAMILA (Querist)
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27 January 2011 Sir, I am manager-finance.

We intend to purchase a Toyoto Fortuner to a value of Rs.26lacs.

My query is to buy the vehicle in cos. name or in individual name. If bought in individual's (MD's) name and lease it to co. will the lease paid to him can be treated as expenses in cos. a/c

Awaiting for your response to take a decision accordingly today.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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27 January 2011 Yes, The expenses paid by a company for hiring a vechicle is an allowable expenditure.

Please make an agreemant and deduct Tax on the payment u/s 194C of the Income Tax Act.

Guest

Guest (Expert)

27 January 2011 But on the same time, lease rent will be the income of MD.

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