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
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- RCM INVOICING FROM NOV-2024
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
Trending Online Classes
CAclubindia
