My client is an Advocate by Profession. He has a Scooter & claims depreciation for the same in his accounts books. Now he want's to purchase Car on loan. Can he claim depreciation on Car too & can he claim interest on Car Loan as Expenses. If ITO can object about two vehicals in future, should he sell his scooter to his wife to avoid any unnecessary harrassments.
16 Replies
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 15 October 2009
he can use the car and scooter for his business purpose and can claim depreciation for both the vehicles..
And even interest can be claimed as expense..
T.S.CHANDRASEKARAN
(CHARTERED ACCOUNTANT)
(60 Points)
Replied 15 October 2009
| Originally posted by :RAJ | ||
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My client is an Advocate by Profession. He has a Scooter & claims depreciation for the same in his accounts books. Now he want's to purchase Car on loan. Can he claim depreciation on Car too & can he claim interest on Car Loan as Expenses. If ITO can object about two vehicals in future, should he sell his scooter to his wife to avoid any unnecessary harrassments. Advocate normally have an office needless to say assistants.For carrying out his official work either by himself or through assistants he can have both and claim depreciation.
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Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 15 October 2009
IF Scooter & Car is used for the purpose of his business, he can claim depreciation as well as expenses relating to running & maintenance of such vehicles too. As well as interest paid on car loan can also be claimed as business expenditure.
Best regards,
ratan
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 15 October 2009
there shold be no problem to the ITO regarding two vehicles. so dep on both vehicles and interest on car loan shall be allowed as deduction.
CA. Megha Topiwala
(Job)
(1534 Points)
Replied 15 October 2009
he can claim depreciation on both vehicals as well as interest on car loan can also b claimed....
santhosh
(Student)
(1174 Points)
Replied 18 October 2009
i agree with this answer.... you can claim for depreciation....
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 24 October 2009
any type of expenditure allowed as expense in profit and loss account which related for business/profession. so in the above case if the advocate uses both scooter and car for his profession only then u can claim full depriciation and interest as well as maintanance expenses for both scooter and car. but he uses for personal use then expenditure at the time of personal use not allowed for business expenditure as well as proporationate of interest and expenditure. However the ITO not satisfied about the expenditure on car and scooter used for business use then he can add back to the income at the time of assessment
For example: mr.A has both car and scooter. He used car for 50 days for his personal use and expensed rs.5000 at the time of personal uses of car in the F.Y.2008-09. so the expenditure rs.5000 is personal nature should be debited to capital a/c or drawings a/c not for p&l a/c as well as depriciation and interest for 50 days is also personal nature
Thank you
OM SAI SRI SAI JAI JAI SAI
Sanjay Kumar Agarwal
(Project Finace)
(43 Points)
Replied 24 October 2009
An assessee can claim depreciation on both car and scooter, if they r used for the purpose of running business (includes profession).
there should not be any problem to the ITO regarding two vehicles. so depn on both vehicles and interest on car loan shall be allowed as deduction.
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 25 October 2009
u can cliam both depreciation as well as any exp. only if its for business purpose
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 25 November 2009
he cam claim both if car and scooter both are used for carrying on its profession.
praveen
(Chartered Accountant)
(6971 Points)
Replied 25 November 2009
yes depreciation and expenses are allowed.
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