Amir
(Learner)
(4016 Points)
Replied 25 March 2010
Dear Hireshire,
IT WOULD HAVE BEEN BETTER HAD U MENTIONED THE OWNER OF THE CAR. - COMPANY OR DIRECTOR.
ANYWAYZ -
The expenses will be allowed as deduction in computing the Total Income of the Company
DEPRECIATION WILL BE AVAILABLE IF CO. IS THE OWNER (NOT NECESSARILY ON PAPER BUT IN REAL SENSE)
Further in the hands of Director the provison of Valuation of Perquisite - Motor Car will apply.
In case the company is reimbursing the running/maintenance expenses to the Director then AO Can invoke Sec 40A(2)-PAYMENTS MADE TO SPECIFIED PERSONS
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 25 March 2010
it is taxable in the hands of employee i.e.director as perquiste. nd expenses allowable to company, and company assessee can claim for dep. if car is owned by the co.
CAclubindia
