Our company is planning to give machinery on Finace Lease. The structure is that - Original Cost of Machine is Rs. 10 Lacs; Lease period 36 Months; Lease Rental 30232/- per month (consiting Principal & Interest part); Residual Value Rs. 2 Lacs. My question is:
1. Whether on this transaction DVAT is payable.
2. If yes, whether DVAT is payable at the time of inception of lease on total amount of lease inc. residual value i.e 30232 X 36 Month plus 2 Lacs =1288352/- and to be deposited immediately.
3. If answer to 2 in negative, then whether DVAT is payable on monthly installement of Rs. 30232/- and will be payable montly/ quarterly with the Goverment.
Please clarify on URGENT basis.
Thanks in advance
CAclubindia
