Query related to Amortisation of Lease-hold Land
Background:
'X' Ltd. having a Leasehold land in MIDC for 95 years, which was hypothicated with 'B' Bank. On indebtness of 'X' Ltd., 'B' Bank sold out d unit to 'K' Pvt. Ltd. for consideration, say 12 Crores.
'K' P. Ltd. also paid some value in the form of transfer fees to MIDC, say 40 Lacs.
Now the quetions are-
1. Whether in the above case, transfer of Land by Bank will b considered as Sale of Land to 'K' P. Ltd. or Lease transaction only?
2. If the above is considered as Sale transaction, Leasehold Land will be considered as Land only on which Depreciation NOT to be provided or what?
3. If the above is considered as Lease only, where it is to be amortised over a period of Lease?
4. Whether the Leasehold Land in MIDC can be Hypothicated? Whether the same can be sold?
Please reply if any one knows the solution.
Regards,
Saurabh
CAclubindia
