As 19 leases
This query is : Resolved
11 September 2012
Dear sir,
Ours is a Pvt Ltd Company. We have taken Land and Building on lease from an individual for 30 years. One time consideration is Rs. 3.35 crores. The Cost of Land and building in the books of the individual (LESSOR)is Rs 3.30 crores. As per the terms of lease agreement, the lessee (PVT LTD COMPANY) has to be return the property to the lessor after the period of lease and there is no residual value attached . The lease is transferred with all risks and rewards incident to ownership of the asset.
How should the LESSEE i.e the individual tax payer recognize the receipt. Is it capital receipt or revenue receipt?.
There is no yearly lease rentals and no interest is charged.
LESSOR: Individual
LESSEE: Private limited Company
Lease Property: Land and Building
Lease consideration : 3.5 Crores One time payment
Please clarify
Ours is a Pvt Ltd Company. We have taken Land and Building on lease from an individual for 30 years. One time consideration is Rs. 3.35 crores. The Cost of Land and building in the books of the individual (LESSOR)is Rs 3.30 crores. As per the terms of lease agreement, the lessee (PVT LTD COMPANY) has to be return the property to the lessor after the period of lease and there is no residual value attached . The lease is transferred with all risks and rewards incident to ownership of the asset.
How should the LESSEE i.e the individual tax payer recognize the receipt. Is it capital receipt or revenue receipt?.
There is no yearly lease rentals and no interest is charged.
LESSOR: Individual
LESSEE: Private limited Company
Lease Property: Land and Building
Lease consideration : 3.5 Crores One time payment
Please clarify
11 September 2012
who is lessor and who is lessee? I think the pvt ltd company is LESSEE right? And why are you referring it to as "Financial Lease"? Please clarify.
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12 September 2012
LESSOR: INDIVIDUAL
LESSEE: PVT LTD COMPANY
LEASE PROPERTY : LAND AND BUILDING
LEASE PERIOD: 30 YEARS
LEASE CONSIDERATION: 3.5 CRORES (ONE TIME PAYMENT)
LESSOR: INDIVIDUAL
LESSEE: PVT LTD COMPANY
LEASE PROPERTY : LAND AND BUILDING
LEASE PERIOD: 30 YEARS
LEASE CONSIDERATION: 3.5 CRORES (ONE TIME PAYMENT)
12 September 2012
This is LEASE RENT
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