Plz Guide me
There is a company which has taken a land for lease for 18years which has to pay a monthly lease rent of Rs.150000/-
the doubt is, do we have to capitalise it or charge to P&L A/c (fully)
it is Operating leas
1 Replies
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 23 May 2015
Please provide some additional details:
1. After lease period, will this land transfer back to owner.
2. Is this lease period extendable as a right to lessee
3. Extablish from the facts if its financial lease or operating lease
If its financial lease, you need to capitalise.
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