Sale lease back transaction - what is proof require
hetalsangoi
(Querist) 19 November 2012
This query is : Resolved
My firm has purchased the industrial shed with Land & Building as on 31.oct2012 and firm get the vacant possession from the private Ltd co.
Agreement consideration is above the ready recknower value. this transaction is duly executed through paying stamp duty at M.V and conveyance deed is duly registered with Sub registrar of registration office.
now on the base of the request of private co has given on the lease to same private co for 11 months by the purchase party i.e. firm. one of my friend suggest that it is sale lease back transaction. but when i read entire the article on sale lease transaction, i come to summary that my firm has purchased that assets as to create the own my firm interest.it is not the finacial arrangement between my firm & private co.
now my concern is that
1.can it is sale back transaction ,as my agreement is duly stamped with paying require stamp duty as well as registered.
2.my firm has taken loan to finance this property to purchase.
3. which as applicable?
4.should my firm can claim depreciation for the half year i.e.7.5%
5.how to account lease rent recepit? pl guide me & also suggest the supporting section which can give me broader understanding on above case.
ajay sethi
(Expert) 19 November 2012
you have duly purchased the property in Oct 2012 for market value by paying stamp duty and registartion charges . immediateldy you have given premises on leave and license to same party . necessary to go through clauses of your agreement with seller
hetalsangoi
(Querist) 24 November 2012
in this case my firm can claim half year depreciation in his books of accounts?
as per income tax law, is it genue claim?
