Expense sharing


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Quick Summary
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.

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

08 February 2024 Share based on floor area.

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

08 February 2024 Detailed calculation will help.


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