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.
Message likes :
1 times
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Specified Profession
- Last year TDS Claim
- STCG FOR GOLD ETFs
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
