Transfer money one company to another company ( tax payer) for payment of tax liability

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This query is : Resolved

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A query asks if ABC company can transfer funds to XYZ company to cover XYZ's tax liability, as XYZ's owner is unable to pay. The key concern is whether this transaction attracts GST, especially since XYZ is unwilling to repay or adjust the amount. The discussion seeks clarification on GST provisions for such inter-company payments, considering it might be treated as a loan or deposit.

Chinna Rao

Chinna Rao (Querist)
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11 June 2024 Hi Sir,
ABC company is staying in XYZ owned building. XYZ is liable for some tax payment to Government. XYZ company owner unable to pay the liability. ABC company is ready to pay the tax liability as he is staying in XYZ building. XYZ company not willing to return it back or adjusted against Loan/deposit.

Can ABC company transfer money to XYZ company to pay XYZ's tax liability. is that transaction attracts any GST.
Thanks
ChinnaRao.

Chinna Rao

Chinna Rao (Querist)
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11 June 2024 Any possible response may be invited, if any provisions available under GST.