Property on lease

Prakash Sharma (Querist) 17 July 2012 This query is : Resolved
OUR COMPANY WANTS TO TAKE A RESIDENTIAL FLAT ON LEASE FROM ITS EMPLOYEE.CAN A PVT LTD COMPANY DO SO.
WHAT SHOULD BE THE LEASE AGREEMENT LOOK ALIKE.
CAN THE COMPANY MORTGAGE THE PROPERTY WITH BANK FOR OD CC LIMIT.
KINDLY EXPLAIN & HELP

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Vinod kashyap (Expert) 17 July 2012
Company is a legal entity and acting through its authorized representative. company will do all legal acts like sale purchase lease gift mortgage transfer etc.

Prakash Sharma (Querist) 17 July 2012
Thank Mr Vinod,

Can I get a format for lease agreement in this regard.
What are the basic point to be taken care of from Legal as well as Income Tax point of View.

M V Gupta (Expert) 18 July 2012
A company cannot take property on lease unless it is required for the business of the Company. Pl check the Articles. It cannot take the property on lease only for the purpose of offering the lease hold rights as security for the CC limits. As regards the contents of the lease deed, you may see any standard book on documentation.