24 February 2016
can company claim the depreciation & interest on car loan and show car as an asset of the company if the car is registered in the name of director provided proper records are maintained i.e. minutes, rights, beneficiary, etc.
24 February 2016
Yes in your case you are eligible to claim depreciation and interest.
Depreciation and interest will be allowed however onus to prove benificial ownership is in hands of taxpayer.make sure company pays for insurance premium of car and other maintenance exp.. also,
Resolution may be prepared detailed way explaining car is exclusively used for business purpose only and if in future if car is sold proceeds will be deposited with the company
Registration was not a criteria for claiming depreciation u/s. 32 of the ITA and in this regard relied on the following judicial precedents: (a) CIT vs. Navdurga Transport Co 149 CTR 219 (1998) (b)Mysore Minerals Ltd vs. CIT 106 Taxman 166 (1999) (c)CIT vs. Dilip Singh Sardarsingh Bagga 201 ITR 995 (1993)
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