Lease Financing

Concept

Essential elements

Classification

Sale and lease back

Single investor lease and leveraged lease

Domestic Lease and International Lease

To the lessor

Profile of leasing in India

Accounting Framework and taxation of Leasing

Accounting for Leases by a Lessee

Financial Lease

Operating Lease

Disclosure in financial statements of lessee

Accounting for Leases by Lessors

Accounting and Reporting(Operating Lease)

Tax Aspects of Leasing

Income Tax Considerations

Lessor

Taxability of Lease Rentals

Deductibility of Expenses

For Lessee

Allowability of Lease Rentals

Deduction of Incidental Expenses

Tax Planning

Sales Tax Aspects

Financial Evaluation of Leasing

It generally involves 3 steps

Lessee’s Perspective