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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
