Sister Concerned Companies Transaction
This query is : Resolved
28 June 2024
There are two sister concern companies. Company A & Company B.
One Vendor have given credit note in Company A, hence the amount is receivable from vendor.
The same vendor balance is payable in Company B. Hence the amount is payable to vendor.
So in this case can we pass internal Journal Entry from Company A to Company B, rather to take refund of credit in Company A.
Please suggest as per Income Tax Law and Companies Law.
One Vendor have given credit note in Company A, hence the amount is receivable from vendor.
The same vendor balance is payable in Company B. Hence the amount is payable to vendor.
So in this case can we pass internal Journal Entry from Company A to Company B, rather to take refund of credit in Company A.
Please suggest as per Income Tax Law and Companies Law.
03 July 2024
Yes, you can pass internal journal entry no problem under any law.
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