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Inter Company

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(Querist)
05 February 2010 Dear Experts,

There 2 companies under the same management. What are the legal implications of cross charging expenses in between these companies? Should there be any agreements? Can one company pay on behalf of another company without any agreements?
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CA Kapil B Gupta

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CA Kapil B Gupta (Expert)
05 February 2010 Ideally without any supporting docs like agreement or board resolution, it should not pay or receive.
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