11-05-2010, 03:17 PM
As we know in tax all leases are treated as operating leases. Therefore tax base of leased asset is nil. However when the lease asset is transferred to freehold (in case of finance lease), the it should be shown as addition in the tax admissible schedule (on WDV of course.)
But i have seen some tax computations where such transfer is not shown as addition in tax admissible schedule. I want to know the relevant reference from the income tax ordinance or rules regarding this issue?
Is it optional to show this addition or not?
Thanks in advance.
But i have seen some tax computations where such transfer is not shown as addition in tax admissible schedule. I want to know the relevant reference from the income tax ordinance or rules regarding this issue?
Is it optional to show this addition or not?
Thanks in advance.
