Long Term Financing
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Long Term Financing
- 1. Long Term Financing….. Continued part left by Group C
- 12. Difference Hire Purchase Financing Lease Financing Hirer is entitled to claim Depreciation Tax Shield. Lessee is not entitled to claim depreciation tax shield. Hirer can charge only interest Portion. Lessee can charge the entire lease payments as expense for tax computation. Once the hirer has paid all instalments, he becomes the owner of the asset and can claim its salvage value. Lessee does not become the owner of the asset. Therefore he has no claim over the asset salvage value.