Land

Dear Priya,

as per my knowledge, depreciation can be claimed only on building and not on land.

Land is a non depreciable asset..

- Ankit

But its a leasehold land...and the major issue is leasing a land without transfer of ownership

Ya we can amortize it

Assuming this as a finance lease,

The finance lease provider issues an invoice to the lessee immediately upon contract activation. The invoice contains the full obligation: principal + rent per contract (compound interest for the entire duration of the contract period) + all VAT (VAT on the leased asset, invoicing VAT, and VAT on the interest). Based on this, the lessee will include the piece of equipment in their Balance Sheet. Accordingly, the equipment will be recorded in assets, while the long-term commitment to lease will be recorded in liabilities. This piece of equipment is subject to depreciation. If it is a fixed asset for which the user is entitled to tax deduction, the invoice will be the basis for the deduction of the full amount of VAT.

tax benefit in finance lease is depreciation & inerest,

actually this is the procedure how we claim depreciation,

still not sure whether the same can be claimed on land or not,

thanks for the question,