15 April 2010
Kindly guide A person is using Car for his personal purposes and now is doing business and wants to takes the Car in his business books of accounts at Depreciated Value(As per Income Tax Act), the asset originally purchased is in the name of proprietor. Pls suggest whether assets can be taken in the books of account and the corresponding loan liability in the books of accounts. The Asset is now fully used for business purpose.
16 April 2010
Yes. prepare an agreement or simply an invoice on the business and sell the car to the business. Get a valuation report of the car, it you feel that the value would be more than the wdv and sell it to the business at higher value.
CAclubindia
