05 January 2011
A motor car is in the name of Director. But it is used fully for PRIVATE company's business purpose. Loan repayment is from company. Can the company claim depreciation and interest on loan? What is solution to bring the car in the balance sheet of the company?
05 January 2011
TRANSFER THE OWNERSHIP OF CAR FROM DIRECTOR TO COMPANY..NO THE COMPANY CAN NOT CLAIM DEPRECIATION AND INTEREST ON LOAN TILL THE OWNERSHIP IS TRANSFERRED TO COMPANY`S NAME.
06 January 2011
Draft a agreement of sale, regarding sale of the motor vechile from Director possesion to Company and register the same agreement at the regional Transport office of the state where the company is register. But before Drafting the sale agreement between the Director and the company, the director has to take the consent of the Board of Directors in Board Meeting as provided under provision of Section 297 of Companies Act 1956.