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Shed taken on lease

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(Querist)
13 May 2019 Our company has taken one shed on lease for 30 years and paid premium which is non refundable .Please clear do we capitalize the amount of premium paid or treat as an expense. In this agreement we had to pay monthly rent for the same.

Please guide.

Regards
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CA Mayur Todmal

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CA Mayur Todmal (Expert)
13 May 2019 apportion lease premium over the lease period to Profit loss statement
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Leo A/cs

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Leo A/cs (Querist)
13 May 2019 If it is a financial lease.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
14 May 2019 Capitalise and charge off over a period of 30 years.
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CA Mayur Todmal

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CA Mayur Todmal (Expert)
14 May 2019 capitalise the non refundable deposit along with value arrived as per as 19 and charge depreciation on the total asset value
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Leo A/cs

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Leo A/cs (Querist)
15 May 2019 Thanks both for guiding.

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