26 February 2013
A company is purchasing a car on its own name and installments paying by employee. After completion of installments period Company will give car to the employee.
In this case, can company charge depreciation till the completion of installments???
Can employee get tax benefit of interest on installment of car loan.
Since car belongs to company only benefit to employee is use of car & no other benefit is available.
Co. has to claim dep. & int. benefit.
At the end of tenure WDV of car (Cost less 20% of depreciation for each completed F.Y.) less Amount recovered if any would be taxable perquisite in the hands of employee.
CAclubindia
