Hey Guyz,
Whether a organisation under tax audit can purchase a second hand car in cash?
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Purchase of car by cash
Replies (2)
Yes, there are no issues in doing so. Only expenditure that is routed through P&L account is disallowable 100% u/s 40(A)(3). Since Car is shown a an asset in the B/S it cant be disallowed because nothing is shwon in the P&L account. The depreciation claimed on the car would also not be disallowed.
yup there is no problem
Sec 40A(3) applicable for only expense 32 to 37 sections
and deprecition arising from above asset should also allowed if any
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