Hire purchase laptop
This query is : Resolved
27 August 2015
my client purchase laptop on hire purchase agreement. for three year the owner ship with company. charging rental + vat .
after 3 yrs if laptop in running condition will be trf to client.
want detail accounting for the same
capitalize
rent exp
vat treatment
Depriciation ?
if within 3 year any thing happen & not getting ownership ?
after 3 yrs if laptop in running condition will be trf to client.
want detail accounting for the same
capitalize
rent exp
vat treatment
Depriciation ?
if within 3 year any thing happen & not getting ownership ?
28 August 2015
Dear Ketan
You need to check agreement in detail. The rental charged would also include recovery of cost of the laptops. Also at the end of 3 years, the laptops would be transferred at nominal amount. If this is the case, then the transaction will fall under finance lease. You can refer AS-19. The laptops should be capitalized under fixed assets and a liability also created at same amount. Depreciation can be claimed on the assets. For details on calculation please refer AS-19
You need to check agreement in detail. The rental charged would also include recovery of cost of the laptops. Also at the end of 3 years, the laptops would be transferred at nominal amount. If this is the case, then the transaction will fall under finance lease. You can refer AS-19. The laptops should be capitalized under fixed assets and a liability also created at same amount. Depreciation can be claimed on the assets. For details on calculation please refer AS-19
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
