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Depreciation on commercial vehicle

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harish.k

ipcc

29 Points Joined July 2009

sir , i have a query regarding deperciation on commercial vehicle purchased on june 2013, for business purpose ( rice trading ) its a patnership firm owned by family members as patners, commercial vehicle is purchased on loan , EMI is paying from business funds but vehicle is taken on managing patner individual account name ....., is depreciation applicable or not and at what rate?

and another commercial vehicle is purchased on april 2014 on patner name for business purpose ( rice trading) on loan , EMI is paying from business funds ... is depreciation applicable ..? and at what rate depreciation is chargeable ?

please give me yours answers

Replies (1)

CA PARTH SHAH

In Practice

1951 Points Joined December 2009

Yes. You can claim depreciation in partnership firm on commercial vehicle although the vehicle is registered in the name of Registered owner as the beneficial owner of the vehicle is partnership firm. For the documentary evidence, ther should be an agreement between the Managing Partner and the firm regarding the use of vehcile by the firm. Rate of Depreciation is 15%.