Road tax deduction availability in p and l account
Harshit Acharya (404 Points)
05 July 2020
Is road tax allowed as a deduction from p and l account.
3 Replies
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 05 July 2020
If road tax is a routine expense for your business, then yes. Generally Yes in case of transporters. However, one time road tax while purchasing the truck shall be capitalised to the value of truck.
Harshit Acharya
(404 Points)
Replied 05 July 2020
I am a school and buses are for transportation purpose of students. Road tax is paid for school buses. Then according to your explanation , road tax is not deductible in p and l account..Is this interpretation correct.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 05 July 2020
If road tax is paid on some year on year basis, it is deductible under p/l even if it is a school. However,road tax paid for the first time at the time of purchase of school bus is not deductible under p/l.
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