3. Tax benefits

Potential tax benefits

There may be potential tax benefits for companies using IT equipment leasing, depending on the specific circumstances and the laws of the jurisdiction in which the company operates.

Here are a few potential tax benefits that companies may be able to take advantage of:

1. Write-off of lease payments:  In some cases, companies may be able to write off the lease payments for IT equipment as a business expense on their tax returns. This can be a way to reduce the overall cost of the equipment.
2. Tax benefits for financing leases: In some jurisdictions, companies may be able to take advantage of tax benefits for financing leases, which are leases that are structured like loans, with the company making regular payments to the leasing company and owning the equipment at the end of the lease term. These types of leases may be eligible for tax deductions in some cases.
3. GST savings/deferment: In some cases, companies may save on GST tax payments by leasing IT equipment rather than purchasing it outright. For example, if a company leases IT equipment GST tax can be deferred for a longer period than paying the same amount -a-vis purchasing it and paying the GST amount today.

P.S.: It's important to note that tax laws can vary significantly from industry to industry, and companies should consult with a CA/ tax professional to understand the specific tax implications of IT equipment leasing in your particular situation.