Dear Professionals,
As per Ind AS 116 (Leases) where there is requirement of booking of RIGHT OF USE as Asset and corresponding LEASE LIABILITY in the balance sheet of Assesse. However as per Old Indian GAAP the same is treated as Rental Expense (In Case of Operating Lease) in the profit and loss without corresponding impact on Balance sheet.
Earlier in Old IGAAP we used to deduct TDS under sec 194 I on lease rental paid but now after introduction of Ind AS 116 where the lease rental would now be split into Finance Cost and Repayment of Lease Liability.
Now my question is under which section TDS would be deductible on Lease rental payment whether on 194I or 194A (On interest part) ??
Further to add on it whether Depreciation would be deductible under income tax on Right of Use Assets??
CAclubindia
