Vinod V Menon CA | CISA (Chartered Accountant) (510 Points)
07 March 2011Hi friends, Please advise on this. We are planning to start a hospital and there are two diff proposals in front of me. One is to buy the land and do the construction our self (building) and second is another company will buy the land, construct the building and lease it to us for 10 years. After the lock in period of 10 years, we can buyout the building at 14% IRR or continue the lease for next 10 years.
Without looking at any figures, can you please advise which one will be best?
Mandar Deshmukh
(Article Assistant)
(78 Points)
Replied 07 March 2011
If only Tax Implications are considered, option of lease should be prefered.
Vinod V Menon CA | CISA
(Chartered Accountant)
(510 Points)
Replied 08 March 2011
| Originally posted by : Mandar Deshmukh | ||
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If only Tax Implications are considered, option of lease should be prefered. |
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Kindly explain.
CAclubindia
