Value of car

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2012 HI

i m using my car for my personal purposes which i bought in 2009 for Rs. 5,00,000/-
now in 2012 i have started my business as a proprietor n start using my car in business.

my query is that

what value of car i show in book?
is it be Rs. 5,00,000/- or Rs. 5,00,000/- less depreciation for 2009 to 2011.?

Guest

Guest (Expert)

24 July 2012 deduct depriciation

SANYAM ARORA

SANYAM ARORA (Expert)
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24 July 2012 You should deduct Depreciation for both the years and show the W.D.V in Books of Accounts

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 dear experts there is little difference

as per explanation 5 to section 43(1) we have to deduct deption only in case of building if we transfer personal-use building to our business and that to at the rate of that yean in which it is used in business.

in case of car, laptop, bike, bus or furniture etc. we can take its actual cost as it is in our books.

eg. in given case its Rs. 500000/-

thanks and regards