07-08-2010, 02:22 PM
In leasing, you acquire the right to use the vehicle not the ownership of vehicle during the life of lease against lease rentals. I understand;
DURING THE LEASE TERM fair value of vehicle at the commencement of lease shall be cosidered as value of conveyance for income tax purpose of employee.
WHEN LEASE PERIOD IS ENDED, you have "option to acquire the OWNERSHIP of vehicle against nominal price" (known as bargain purchase option). After excercising this option, this nominal price becomes your purchase price of vehicle and i understand that this price should be considered as fair value of conveyance for income tax purpose of employee.
Regards,
*
DURING THE LEASE TERM fair value of vehicle at the commencement of lease shall be cosidered as value of conveyance for income tax purpose of employee.
WHEN LEASE PERIOD IS ENDED, you have "option to acquire the OWNERSHIP of vehicle against nominal price" (known as bargain purchase option). After excercising this option, this nominal price becomes your purchase price of vehicle and i understand that this price should be considered as fair value of conveyance for income tax purpose of employee.
Regards,
*
