Accounting
This query is : Resolved
25 June 2008
Should Depreciation be provided in th Books by the LESSOR of a Finance Lease Transactiion? If so, will IT- ACT also grants it?
Same Question- What about in OPERATING LEASE
What about in case of pure Hiring of machinery?
Same Question- What about in OPERATING LEASE
What about in case of pure Hiring of machinery?
25 June 2008
financial lease...yes.... depreciation can be claimed.
Operating lease...NO...WHATEVER IS PAID TO THE LANDLORD IS EXPENSED...i mean debited to p/l a.c
Hiring charges are expensed...
Operating lease...NO...WHATEVER IS PAID TO THE LANDLORD IS EXPENSED...i mean debited to p/l a.c
Hiring charges are expensed...
25 June 2008
Thanks. Let me rreframe my question.
a) In case of Finance Lease- Who should provide for depreciaion in Books? and who gets the benefit of Depn under sec.32 of IT ACT.
b) In case of Operating Lease- Who should provide for depreciaion in Books? and who gets the benefit of Depn under sec.32 of IT ACT.
c) in case of Pure Hire, I feel the owner of the Asset, i.e one gives on Hire gets Depn and the Hire Charges are income only. The One who takes on Hire pays only Hirre charges and expenses it in his Books by debiting it to his P& L A/c. Is this thinking correct? kINDLY REPLY POINTWISE for better understanding
a) In case of Finance Lease- Who should provide for depreciaion in Books? and who gets the benefit of Depn under sec.32 of IT ACT.
b) In case of Operating Lease- Who should provide for depreciaion in Books? and who gets the benefit of Depn under sec.32 of IT ACT.
c) in case of Pure Hire, I feel the owner of the Asset, i.e one gives on Hire gets Depn and the Hire Charges are income only. The One who takes on Hire pays only Hirre charges and expenses it in his Books by debiting it to his P& L A/c. Is this thinking correct? kINDLY REPLY POINTWISE for better understanding
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