Hello Everyone..
Please, Can any one tell me the treatement of finance lease under Income Tax and Companies act and DTA/DTL implication under AS-22.
Ashish Gupt (CA) (42 Points)
28 September 2011Hello Everyone..
Please, Can any one tell me the treatement of finance lease under Income Tax and Companies act and DTA/DTL implication under AS-22.
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 29 September 2011
For lessee:- while preparing Pl you can get deduction for finacial charges and depreciation while in tax computation lease rentals is allowed as deduction.Due to this difference DTA/DTL is created .
For lessor:Under the tax laws depreciation is allowed as espense to lessor and lease rentals are considered income and in accounts financial income is only subjected to tax hence DTA/DTL will be created.
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