Premium paid for NOIDA Land

Dear colleagures,

A pvt ltd. company while purchasing an industrial from NOIDA authority, has entered into

an Lease Agreement whereby they pay a PREMIUM of Rs.98 lakhs (non-refundable) and

an annual lease rent of Rs.2 lakhs.  My queries are:

a) Whether PREMIUM paid can be claimed as exp under IT Act.

b) Whether TDS to be deducted on lease rent?

Pls clarify.

Rgds

Raman

Replies (1)

This is my opinion

As Per AS-19

This Asset shold be treated as Leased Asset and the deduction of premium amount is not allowed

& deduction of Depreciation is allowed as per the provision of AS-6 (except in case of land).
 

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