Leasing has great potential in India. However, leasing in India faces serious handicaps which may mar its growth in future. The following are some of the problems.
1. Unhealthy Competition:
The market for leasing has not grown with the same pace as the number of lessors. As a result, there is over supply of lessors leading to competitor. With the leasing business becoming more competitive, the margin of profit for lessors has dropped from four to five percent to the present 2.5 to 3 percent. Bank subsidiaries and financial institutions have the competitive edge over the private sector concerns because of cheap source of finance.
2. Lack of Qualified Personnel:
Leasing requires qualified and experienced people at the helm of its affairs. Leasing is a specialized business and persons constituting its top management should have expertise in accounting, finance, legal and decision areas. In India, the concept of leasing business is of recent one and hence it is difficult to get right man to deal with leasing business. On account of this, operations of leasing business are bound to suffer.
3. Tax Considerations:
Most people believe that lessees prefer leasing because of the tax benefits it offers. In reality, it only transfers; the benefit i.e. the lessee's tax shelter is lessor's burden. The lease becomes economically viable only when the transfer's effective tax rate is low. In addition, taxes like sales tax, wealth tax, additional tax, surcharge etc. add to the cost of leasing. Thus leasing becomes more expensive form of financing than conventional mode of finance such as hire purchase.
4. Stamp Duty:
The states treat a leasing transaction as a sale for the purpose of making them eligible to sales tax. On the contrary, for stamp duty, the transaction is treated as a pure lease transaction. Accordingly a heavy stamp duty is levied on lease documents. This adds to the burden of leasing industry.
5. Delayed Payment and Bad Debts:
The problem of delayed payment of rents and bad debts add to the costs of lease. The lessor does not take into consideration this aspect while fixing the rentals at the time of lease agreement. These problems would disturb prospects of leasing business.
First Malayan Leasing and Finance Company is one of the pioneer in the leasing and financing industry in the Philippines.
SEBI regulates the business that happens in the Indian stock exchanges and other securities markets in India.
yes
As of July 2014, the market cap for Fly Leasing Limited (FLY) is $603,958,462.89.
The mishandling of funds has been the scope of problems that has been seen in India's merchant banking. A more limited amount of financial managements could solve the problem.
A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset.[
No Record of leasing in india ... its a to old deals of leasing may be before british role
Of course there are gang problems in many states of India, but the newspapers don't usually discuss this information until some brutal killings take place.
You need to discuss it with the landlord or someone with authority at the leasing office. Only the maker of the lease can release you from it and you need to get that in writing.You need to discuss it with the landlord or someone with authority at the leasing office. Only the maker of the lease can release you from it and you need to get that in writing.You need to discuss it with the landlord or someone with authority at the leasing office. Only the maker of the lease can release you from it and you need to get that in writing.You need to discuss it with the landlord or someone with authority at the leasing office. Only the maker of the lease can release you from it and you need to get that in writing.
tall the problems started
discuss the cave episode in A Passage to india ?
they disscussed trade and boundary problems
trolololololololo
Tea Time!
with and/or without vigour
Discuss the context of privatization in the context of current
Discuss the context of privatization in the context of current