Contract between two companies

Kapoorsmriti (27 Points)

10 May 2007  
actually we have two companies One for Leasing & other for Construction can we have contract between two companies i.e on behalf of Leasing we can construct through construction co. Or contruction co. does construction on behalf of Leasing co. If it is possible what are the formalities regarding this & Can there be any benefit in respect of Income Tax.