Hey Guyz,
Whether a organisation under tax audit can purchase a second hand car in cash?
CA Yuvraj Tiwari (Chartered Accountant) (86 Points)
05 April 2013Hey Guyz,
Whether a organisation under tax audit can purchase a second hand car in cash?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 05 April 2013
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.
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 05 April 2013
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
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
