Raman (CA) (62 Points)
29 July 2010Dear 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
Dheeraj
(Learner)
(1100 Points)
Replied 03 August 2010
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).
CAclubindia
