Hello all,
I have a query regarding the accounting treatement. If someone purchase a vehicle for his vehicle hire business,can he show it as an asset?or what else the accounting treatment?Please clarify me.
vishwam (article trainee) (82 Points)
13 March 2013Hello all,
I have a query regarding the accounting treatement. If someone purchase a vehicle for his vehicle hire business,can he show it as an asset?or what else the accounting treatment?Please clarify me.
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 March 2013
if the vehicle is purchased for the business purpose (income) than obviously it must be shown in the assets side of balance sheet...whether the asset derives any income or not...
Gemina
(Inter CA)
(54 Points)
Replied 13 March 2013
If the person is purchasing the vehicle for Vehicle Hire business than it cannot be shown as asset, since he is using the same for regular business activity.
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 March 2013
@ gemina...which accounting rule is applicable???
vishwam
(article trainee)
(82 Points)
Replied 13 March 2013
Hi vardhan sir
Vehicle is deriving income,but it is used in regular business activity i.e,main business activity.So How Can i show it as an asset?
IMAM
(ARTICLE ASST.)
(371 Points)
Replied 13 March 2013
AS YOU SAY HE PURCHASE VEHICLE FOR BUSINESS ITS BUSINESS ASSETS.
SO CONCLUSION IS THAT YOU SHOULD SHOW THAT AS A ASSET.
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 March 2013
i agreed with IMAM.
IMAM
(ARTICLE ASST.)
(371 Points)
Replied 13 March 2013
HE HAS HIRING OF VEHICLE SO ITS NOT STOCK IN TRADE ITS ACTUALLY HIS PROPERTY/ASSET SO SIR YOU HAVE TO SHOW IT AS ASSET
IMAM
(ARTICLE ASST.)
(371 Points)
Replied 13 March 2013
VISHWAM WHERE YOU FROM ? IF YOU NEED DIRECT GUIEDANCE THEN I CAN GIVE MY CELL NO.IF YOU WANT
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 March 2013
@ GEMINA....FOR E.G. SUPPOSE YOU STARTED YOUR OWN BUSINESS OF TOURS & TRAVELS AND IF YOU ARE PROVIDING CARS & BUSES ON RENTALS TO OTHER THAN YOU SHOULD APPLY SERICE TAX TOO ON SUCH SERVICE ON THE OTHER HAND IF YOU ARE PURCHASING SUCH ASSETS FOR BUSINESS EXPANSION OR A STARTUP AS THE CASE MAY BE...YOU SHOUL SHOW IT ON THE ASSET SIDE OF THE B/S...ON THE OTHER HAND DEPRECIATION IS ALSO APPLICABLE..
vishwam
(article trainee)
(82 Points)
Replied 13 March 2013
Thank you vardhan sir,and imam sir.Should all chairs and tents in shamiyana business be treated as fixed assets?
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 March 2013
SHAMIYANA BUSINESS MEANS ????? EXPLAIN IN DETAIL
vishwam
(article trainee)
(82 Points)
Replied 13 March 2013
it means tent hirers.i.e,hiring tents for functions and marriages like event management companies
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 March 2013
OBVIOUSLY THAN ALL CHAIRS & TENTS ARE ASSETS OF THE MANDAP KEEPER OR THE CATERER AS THE CASE MAY BE.
vishwam
(article trainee)
(82 Points)
Replied 13 March 2013
Could you please tell me the depreciation rate as per IT Act
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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