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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.

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3 Replies

CA Raj Doshi (Practising CA) (8939 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.

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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) (8939 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.