While the exercise option (ii) will see the title in the customer`s car passport, exercise option (iii), and largely unknown to the average customer, the title will be given to the customer before moving to another location, usually returning to the original car home. The car under the existing PCP contract is then treated as a “trade-in” for a new PCP-financed car, but if the car`s market value has fallen below the GMFV, possibly due to wear factors or unforeseen factors such as the expiration of diesel vehicles, the customer may have to pay a larger deposit to enter the new contract. At present, therefore, the owner does not have a real contractual relationship with the seller. If the owner is also not willing to take care of the buyer to recover the balance of the price, a financier can pay the balance and proceed with the recovery. In this form form, the goods are purchased by the financier from the merchant, who then receives a lease-sale contract from the customer under which the customer becomes the owner of the goods with the payment of all the agreed rent payments and in the exercise of his option to purchase for the nominal price. As a result, the 46th Amendment was adopted in 1982 and Article 29A was introduced in Article 366 of the Constitution. With regard to leases, the amending law stipulates that, since there is a sale only when the tenant makes use of his option to purchase, only the depreciated value of those who participate in such a transaction at the time of the exercise of the option can be assessed at VAT. In the wake of the COVID 19 crisis, the global automotive industry is facing an unprecedented challenge. Trying to manage reduced household budgets, many people struggle with their monthly car payments as part of their hp or PCPs agreements.

The purpose of this document is to examine in depth the leases of sale, with particular attention to the Indian context. Therefore, it would begin to examine the history and nature of these transactions, followed by a comparative analysis between the relevant common law position and Indian law. The relevant case law was invoked to the extent possible. Companies that need expensive machinery – such as construction, manufacturing, factory leasing, printing, road transport, transportation and engineering – can use leases, as can startups that have few guarantees to establish lines of credit. In the following decision (1965), the Legal Committee recommended, in its 61st report (1974), “certain problems related to the power of states to impose a tax on the sale of goods and the Central Sales Act, 1956”, that local transactions not be subject to VAT, unless the disputed sale does take place.