Lease
This query is : Resolved
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?
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
- Itr 1 processing
- Reporting Income under Section 44ADA
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- TDS ON CASH WITHDRAWALS...
- Article ship defecit
- Form 10BD Filling
- Registration as Authorised Representative of minor
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Delisted shares sold in off market/ Rebate u/s87A
- Error whiling application of GST REFUND (ANNEXURE B)
- While filing GSTR9 accountant couldn't entered the ITC values in Table 6, in 9C it is not accepting
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
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
