2. A lease is
a contractual arrangement calling
for the lessee (user) to pay the
lessor (owner) for use of an asset.

3. • Generally there are two parties to a lease
agreement
• Leasing is used for financing the use of fixed
assets of high value. In India equipment
leasing is very popular.
• The term of the lease is called the lease
period. It is the period for which the lease
agreement is in operation.
• Lease rentals constitute the consideration
payable by the lessee as specified in the
lease transaction.

6. • Ownership
• Up-front costs
• Monthly payments
• End of term

7. • Basic tax treatment of lease
• Rates of depreciation
• Depreciation allowance on
lease transactions
• Sale and leaseback
transactions

8. Legal Aspects of Leasing
• As there is no separate statue for
equipment leasing in India, the provisions
relating to bailment in the Indian Contract
Act govern equipment leasing
agreements
• Since an equipment lease transaction is
regarded as a contract of bailment, the
obligations of the lessor and the lessee
are similar to those of the bailor and the
bailee