Expense sharing

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When sharing maintenance expenses between group companies, a common and fair method is to allocate costs based on the floor area each company occupies. To ensure these arrangements are considered 'arm's length' – meaning they are conducted as if between independent parties – detailed calculations and documentation are essential to prove the fairness of the allocation.

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(Querist)
08 February 2024 On what basis we can share maintenance expense between group companies?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 February 2024 Share based on floor area.
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sherin

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sherin (Querist)
08 February 2024 What type of documentation need to prove that these expense sharing are on arms length basis
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 February 2024 Detailed calculation will help.
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