Problems of Leasing Companies - Management Duniya

Problems of Leasing Companies

Lack of investor confidence in leasing companies is scarcity of funds with bank & financial institutions. The leasing companies in the private sector are facing financial crunch.

Other Problems are:

Inadequate tax benefits

Absence of integrated and uniform accounting standards, comment to all leasing companies.

The import leasing is subject to various conditions such as minimum paid up capital of 1 crore and company to be listed on a recognised stock exchange.

Accounting problems are such as treatment of these assets as off balance sheet items & lease rentals on accrual basis etc.

Now the leasing is governed by transfer of property act and Indian contract act. Therefore there is a great need of specialised lease act & uniform accounting practices.

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By: Management Duniya