Accouting treatement for leased vehicles

This query is : Resolved

Srinivas (Querist)
Follow

07 May 2012 Our company going to take some cars on lease for office purpose (ours is not a travel operator company)

I would like to know the accounting treatment for this, whether these cars to be capitalized in our books or just the car rentals to be booked as expenses.

Guest

Guest (Expert)

07 May 2012 if the cars are taken under finance lease then it has to be capitalised. if its operating lease then lease rrntals are to be expensed out

Srinivas

Srinivas (Querist)
Follow

09 May 2012 Thank you, please let me know how to differentiate operating lease from Finance lease

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

11 May 2012 If the cars have been leased for substantially the whole life of the cars, then the lease is to be classified as finance lease, otherwise operating lease.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

R M Shekhaliya

Amit Goyal

SHRI HARIRAO

Frank

Pushkar Nagda

Subscribe Now

Accouting treatement for leased vehicles

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

GST CONSULTANCY

Manager- Finance and Compliance

Senior Executive

CA Final