Payment

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CA Priyanka A Mundada (Querist)
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16 June 2015 a person has different companies. he is making e-payment of service tax for all companies from one company's online account.
are there any complications?

Ankur Singhal

Ankur Singhal (Expert)
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16 June 2015 dear
every company must be having its own bank account for the sake of simplicity & hustle free working one should pay its liability through its own account.

But now you can show the company who pays the amount as a liability or as a loan.

CA Priyanka A Mundada

CA Priyanka A Mundada (Querist)
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16 June 2015 whether online payment on behalf of third party is allowed or not?

Ankur Singhal

Ankur Singhal (Expert)
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16 June 2015 If show it as loan then it is not on behalf of other party.

CA Priyanka A Mundada

CA Priyanka A Mundada (Querist)
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16 June 2015 no actually I dont want to show it as loan, in my accounts i am just receiving from one company and paying it's liability of tax

Ankur Singhal

Ankur Singhal (Expert)
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16 June 2015 cannt get u
pls elaborate/

CA Priyanka A Mundada

CA Priyanka A Mundada (Querist)
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16 June 2015 my client has different companies like X Y Z A B. For all these companies, payment related taxes he used to pay through online account of X company as he does not have online account for other companies.
whether there is any issue for such kind of payments?
(Further he is asking me whether there is any Service tax liability to Company X as X is paying taxes of other companies. But as per my Knowledge company X will not incur any service tax liability for such payments)

Ankur Singhal

Ankur Singhal (Expert)
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16 June 2015 Yes u r right taht X will not be liable for service tax as Company X is not charging any fees or commission for such payments.

Now dear please tell me if u donot want to show its as loan then what else treatment would you give?
Do you have other way out.

In my opinion payment made by X is a type of loan given to other companies for payment of taxes.
It does not make a difference that X,Y,z etc are the companies of same person as each company has separate identity.

CA Priyanka A Mundada

CA Priyanka A Mundada (Querist)
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16 June 2015 ok
and when the company will give the amount back then the same will be treated as repayment of loan
are there any complications?
Actually I suggested my client to have separate online accounts for all companies to avoid complications

Ankur Singhal

Ankur Singhal (Expert)
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16 June 2015 Your advice to ur client to maintain seperate accounts is appreciable.

Actually from ur queries i think the scale of the companies is not big.
so need not worry .

CA Priyanka A Mundada

CA Priyanka A Mundada (Querist)
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16 June 2015 client is director of those companies and if he pays all taxes from his own account, in that case is there any problem?
No doubt his account is going high by a big amount but he wants to do the same. In that situation what treatment should he adopt for those payments.

Ankur Singhal

Ankur Singhal (Expert)
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17 June 2015 in my opinion your client is unnecessarily making a small thing complicated.

In case of companies do not make things complicated.
make things simple & easy as in long run it may create problem.

So, leave rest & make payment of companies statutory liabilities only through the bank account of the respective co.

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