31 March 2009
X is a private limited company. It's holding compnay(80% holding) is in mumbai . Some contracts are entered by holding compnay for them and also entered into contracts for X . Becuase the contracts entered by the holding compnay the bills are raised either on the name of the holding compnay or on the name of x but the address is the address of the holding compnay where X has no official address. But all the services /contracts are for the benefit of X and used by X. In this case, can x takes this as its expenditure and can make TDS payment, though the bill is not in it's name and/ address .
The bills are on the name/address of the holding compnay for the services rendered to the subsidiary compnay. Can the subsidiary company pay and claim those expenses as their expenses after making the needful TDS.
21 December 2009
If the bills are raised in the name of holding co. let them claim the expenses and make the TDS compliance. If they have borne the same for subsidiary they can recover it from them in the form of inter co. loan by passing a JV
CAclubindia
