ACTUAL NATURE OF USE OF VEHICLE IS IMPORTANT – lessor is entitled to higher rate of depreciation when vehicle is used for running on hire, though by lessee.

ACTUAL NATURE OF USE OF VEHICLE IS IMPORTANT – lessor is entitled to higher rate of depreciation when vehicle is used for running on hire, though by lessee. https://www.taxtmi.com/article/detailed?id=2010 Ultimate use of a vehicle governs the applicable rate of depreciation: when a vehicle is actually employed in the business of running on hire, the higher rate of depreciation applies to the owner/lessor. Registration of the lessee under the Motor Vehicles Act for road and regulatory purposes does not displace the tax ownership analysis. Where the legal owner invested capital and receives lease rent, the asset's actual use by the lessee in running on hire determines the depreciation rate available to the owner. en-us Sat, 19 Jan 2013 11:15:26 +0530 Sat, 19 Jan 2013 11:15:26 +0530 TaxTMI RSS Generator ACTUAL NATURE OF USE OF VEHICLE IS IMPORTANT – lessor is entitled to higher rate of depreciation when vehicle is used for running on hire, though by lessee. https://www.taxtmi.com/article/detailed?id=2010 Ultimate use of a vehicle governs the applicable rate of depreciation: when a vehicle is actually employed in the business of running on hire, the higher rate of depreciation applies to the owner/lessor. Registration of the lessee under the Motor Vehicles Act for road and regulatory purposes does not displace the tax ownership analysis. Where the legal owner invested capital and receives lease rent, the asset's actual use by the lessee in running on hire determines the depreciation rate available to the owner. Articles Income Tax Sat, 19 Jan 2013 11:15:26 +0530 https://www.taxtmi.com/article/detailed?id=2010