How to treat A Fixed Asset acquired by Lease.
This query is : Resolved
12 September 2009
I am from Columbia Asia Hospital P Ltd. One of our vendor has supplied a lab equipment on lease basis. Its market value is around Rs 25lakhs.The agreement is as follows - the vendor supplies the equipment freely, but we have to purchase the consumables which is to be used for that equipment from him only at agreed rate for 5years with a minimum of Rs 50000/-per month. After 5yrs our company will become the owner of the equipment. During this lease period we need to bear AMC cost.How to treat this as Asset in the books??? The estimated life of Asset is 10yrs.Kindly advice.
12 September 2009
Whats is the price of the equipment...?& its estimated life?
The lease will be treated as Finance lease or operating lease depending on above..
Treatment 4 both type of lease agreement differs as per AS-19
The lease will be treated as Finance lease or operating lease depending on above..
Treatment 4 both type of lease agreement differs as per 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
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Regarding IMS Mandatory from 1st July 2026
- Form 27Q Correction statement taking too long to update on IT Portal
- Scrutiny assessments u/s 143(2) for AY 25-26
- TDS related Query_Liquidated Damages
- Capital Gain on EUITY Shares
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
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
