25 March 2012
when a car is purchased in personal name of a director in a pvt ltd company and the car is used for both office and personal use. can the company claim depreciation for the car's official use? if a business man purchases a car and uses for both office and personal use,can he claim depreciation for the official use?
25 March 2012
No the depreciation is allowed only for the assets owned by the company except in the case of hire purchase. So the director can claim the expenses in the company but not the depreciation. You can do one thing that pass a journal entry and transfer the car to the company although the same is in the name of the company's director. Pass a result ion this effect.
23 July 2013
According to me, merely passing entry in books of Company is not enough to claim depreciation. Consequtive laibility is to be entered in the books of company. For eg if loan is taken then payment has to be done by the comapany with the loan is to be relfected in companies book.
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