can i purchase fixed assets in cash
This query is : Resolved
ganesh singh
(Querist)
23 December 2009
dear sir
Pls clear
can i purchase a fixed assets in cash
and how much amount i can invest in cash
what loss i will get in the transaction
Pls clear
can i purchase a fixed assets in cash
and how much amount i can invest in cash
what loss i will get in the transaction
23 December 2009
If your income is from salary; you can buy fixed assets in cash.
If you are buying fixed assets (except land) which are likely to be used in business and on which depreciation will be claimed; then of course; to avoid litigation; you should not buy in cash.
When you ask about loss; first tell what benefits you are likely to get when you buy it in cash.
People tend to transact in cash only because they are not having banking habits.
Buying through banking channel is more safe and evidence is there that you paid that much amount to someone.
If you are buying fixed assets (except land) which are likely to be used in business and on which depreciation will be claimed; then of course; to avoid litigation; you should not buy in cash.
When you ask about loss; first tell what benefits you are likely to get when you buy it in cash.
People tend to transact in cash only because they are not having banking habits.
Buying through banking channel is more safe and evidence is there that you paid that much amount to someone.
Heera Nahariya
(Expert)
23 December 2009
completely agree with Sir Rakhecha.
CA Ravi Sisodia
(Expert)
23 December 2009
agree
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