Lease agreement requires a stamp duty like any other ordinary agreement under the Indian Stamp Act to pay. However, registration of a lease-sale agreement is not necessary, as it generally does not involve real estate assets. 1.2. What element of a lease agreement between now and July 1, 2012 is a financial benefit and what component is subject to the GST? The tenancy agreement is a contract by which the goods are leased and the tenant has the opportunity to acquire the goods according to the terms of the contract. Leases are often used by the aviation and automotive industry for aircraft and automobile rentals. Sometimes the amount financed in a lease sale includes other amounts, such as registration, stamp duty and insurance, paid by the financier on behalf of the beneficiary. These are not taxable deliveries made by the financier to the recipient. In a tenancy agreement, the lessor rents goods to the tenant with the option of buying the goods if he has paid a certain amount. Under this system, the buyer who is unable to pay the full price of the asset in a package receives the opportunity to acquire an asset and, after payment of an advance amount called premium, the buyer pays the consideration in installments. After payment of all payments, ownership of the goods is transferred to the tenant. The tenant has the option to return the goods during the rental period. In a tenancy agreement, the tenant has the right to terminate the lease according to his pleasure and is not required to pay the value of the goods.

As a result of the changes to the GST rules, which came into effect on July 1, 2012, the credit component is no longer considered a financial supply. This applies to all leases concluded on July 1, 2012. The total amount payable by a beneficiary under a lease-sale contract usually consists of a principal component (i.e.dem amount financed) and an element of credit (i.e. terms and mark-ups). The main component is, as a general rule, the price of the financed products and the credit component represents the interest and related fees and fees, which must be paid by the recipient. This new law does not affect the july 1, 2012 amendments to an existing lease-sale agreement entered into prior to July 1, 2012 if the amendments do not result in a new lease-sale agreement. Leases concluded before July 1, 2012 are governed by the rules in force to date. Leasing is subject to the Hire Purchase Act of 1972. Leases are two types.

In the first type, the goods are purchased by the merchant and the financier enters into a rental agreement with the customer, the customer being the owner after payment of all payments for the goods. In the second type of rental, the client acquires the goods and executes a lease agreement with the financier, in which he remains in ownership subject to payments from the client to the financier. The financier has the right to seize the goods if the customer does not meet the financial repayment condition. If the tenant is late for payment of payments, the landlord can resume the retraction of the goods. However, the use of force during the recapture is not permitted. The use of physical force to recover physical possession of property can lead to a criminal act. Possession of goods may be taken by a civil court. Gst is payable on the amount of the main component represented by the taxable delivery of goods under the agreement. In the case of a lease agreement concluded before July 1, 2012, the credit component is not subject to the GST if it is made available separately and communicated to the recipient of the goods in item 8 of the table of subsection 40-5.09 (3) of the GST regulation.