04 August 2007
i doing an audit of a mnc who hv around 1500 cars for rent n lease a car,n they hv all d cars from banking or financial inst. on finance lease basis which duration is 3 to 5 years to repay the entire amount so it is d financial lease as per as -19 ,n we hv claim depreciation on dat cars for income tax purposes bt kalra sir(mafa teacher) told us we cant claim dep on such cars ,but according my pouint of view it is dispute in income tax deptt which not give any solutiopn to us yet ,so plz tell me watt treatment is better to do n if possible plz inform me any circular or notification issued by i.t. deptt on same topic.
13 August 2007
dear sir , u r rite ,loan taken from bank is not comes under as-19 but there are funds taken from bank as per AS-19,coz they dont fulfill the conditions of loan taken only they have agreement with bank n as per agreement bank purcgased d cars on behalf of our client n give it to use but name on registration certificate is client name mentioned ,and i raised ds query bcoz on my discussionwith kalra sir (mafa teacher),he told me dat till now no any notifications or circulars comes to charge depreciation on assets purchased under fiinance lease n they also solved capital budgeting prob wothout charge depreciation on such assets.
CAclubindia
