Purchase or rent commercial property in india

804 views 2 replies

jrmchess

197 Points Joined November 2011

I have a query regarding acquiring commercial property. If a business enterprise wishes to set up business in India and decides it needs property with a building on it, what should be it's course of action? Should it buy the property on rent or purchase it? What factors need to be considered for both? For example what taxes are applicable, what tax deductions can be availed, is insurance required, maintenance, depreciation, payment in cash or by raising funds? I want to make a financial analysis of this. Can someone please tell me what all factors I need to consider so that I can make a cash flow analysis and find the npv?

Thanks

Replies (2)

Aman Singh

senior manager

25 Points Joined June 2012

If You want to invest in a commercial property or want to buy it, then, you should invest or buy to a reputed company. You should be get whole details about that property like market value of property, property location, resell value, etc. If you want property on lease, then you have to pay 12.36% as service tax. In my opinion, you should go to buy property in place of lease.

Buy property in Jaipur

Shenoipreetish

MBA

23 Points Joined June 2014

Not everyone can buy the property in India there is now an alternative of renting the property in India.

To buy the property in India one needs high amount of investment and commitment towards the property however to rent the property in India it would not require so.