Lease
This query is : Resolved
CA Bharti Sharma
(Querist)
08 February 2014
If a company has taken an asset on finance lease then can it be given as security for raising loan and if yes, whether its charge registration is required under section 125 of Companies Act, 1956?
CA Galib Mirza
(Expert)
08 February 2014
Dear Bharti,
As a company has taken an asset on finance lease basis, the risk and reward has been trf. to the lessee(company) hence if there are also indications regarding the purchase of such asset at the end of tenure, then you can also mortgage such machinery.
Provided if bankers asks you to repay the lease rentals first w.r.t. such asset then you may not be able to raise finance.
If such machine is mortgaged in first case then creation of charge is mandatory
As a company has taken an asset on finance lease basis, the risk and reward has been trf. to the lessee(company) hence if there are also indications regarding the purchase of such asset at the end of tenure, then you can also mortgage such machinery.
Provided if bankers asks you to repay the lease rentals first w.r.t. such asset then you may not be able to raise finance.
If such machine is mortgaged in first case then creation of charge is mandatory
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
- Tax on Amount transferred in HUF Account
- Nursery business
- Working on Gold wastage during Melting of old gold jewellery
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST input credit on commercial property
- ETDS return q4 25-26
- Gift to nri relatives residing in usa
- Intimation under section 245
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
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
