Service tax and VAT on Common Expenditure
This query is : Resolved
30 December 2009
Company A & Company B are are sharing 1st floor of a premise. Company A & B by mutual agrrement decided to go for renovation of first floor. It was decided that Company A will pay for whole renovation and afterward company A will raise a debit note on company B for their share of expenses. All bills of renovation are on the name of company A which include VAT & Service tax also. How the cost can be allocated to Company B so that there in no problem in the assessment related to VAT & Service tax.
gautam kumar vaish
(Expert)
02 January 2010
it is clear that whatever the debit note will be raised subject to the agreement will be treated as the amount of loan from A to company B. however there is no question of adding vat or service tax in the debit note amount. further it is not clear and also neccessary that whether company A has in its name the rent agreement of full premises or both A & B. in that case tretment would be of different nature.
Dhirajlal Rambhia
(Expert)
02 July 2023
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