You are probably familiar with services such as renting a house or renting a car but might not be so familiar with services such as renting consumer durables and furniture or even generator on hire. You must know that renting is popular among businesses because the expenditure incurred on renting is treated as revenue expenditure and written off in the same year. On the other hand, if you owned the assets then you incur capital expenditure that can only be amortized in future years based on prevalent statutory rules. Thus, businesses use generator rental as a strategic tool depending on the prevailing circumstances.
There are many aspects to generator rentals that the rental business owner, as well as the person or business renting a generator, must know. Let’s take a snapshot of generator rental services in India.
