how much motor car allowabe to sole proprietor as per IT.
This query is : Resolved
24 April 2009
i was doing audit of pharma. co. which is sole proprietor and here i found that the proprietor had purchase 4 motor vehicles which is maruti wagonr, toyota innova, honda accord and vehicles. all these assets use for business purpose.
now i want to know is all these vehicles allowable to a single proprietor for depreciation.
now i want to know is all these vehicles allowable to a single proprietor for depreciation.
24 April 2009
What is the accounting treatment for repairs due to an accident on vehicle used for the purpose of company and subsequently some amount recovered from insurance co.
24 April 2009
Entry would be as follows:
Insurance claim on Motor Vehicle Receivable A/C Dr.
Repairs A/c Dr. (Bal. Fig.)
To Bank A/c
And when Insurance claim is reveived
Bank A/c Dr.
To Ins. claim on motor vehicle receivable.
Insurance claim on Motor Vehicle Receivable A/C Dr.
Repairs A/c Dr. (Bal. Fig.)
To Bank A/c
And when Insurance claim is reveived
Bank A/c Dr.
To Ins. claim on motor vehicle receivable.
24 April 2009
Ofcource... If the car is used for business purpose depriciation can be claimed u/s 32.
24 April 2009
Rajesh -
It is a normal practice to buy vehicles in the name of the business and using them for business and sometimes for personal purpose.
The proprietor can avail depreciation on all the vehicles as the vehicles are being used for business purpose.
It is a normal practice to buy vehicles in the name of the business and using them for business and sometimes for personal purpose.
The proprietor can avail depreciation on all the vehicles as the vehicles are being used for business purpose.
24 April 2009
if all the assets will allowable for depreciation as per income tax than everyone would buy as much vehicles on loan to avoid tax as he will get deprecitaion and interest on loan.
24 April 2009
You have to prove to the income tax department that all the vehicles are exclusively used for business purpose. such a log book containing day of use kms starting and ending kms place, customer name or purpose. The assessing officer has right to disallow even the depreciation stating that this is not a reasonable expenditure. It depends on the turnover and the requirement of vehicles. We cannnot get the benefit just like that.
24 April 2009
of course
24 April 2009
AGree with CA. B.SRINIVASULU
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Offsetting interest income against derivative trading losses
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Application of 115BAC
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
