Menu
Cost sharing between group companies in same state or inter state
Hi... If one company is incurring some expenses and part of the same are allocated between group companies and recovered such cost from group companies, then is it cover under GST as pure agent concept or not. And if GST liability arises then is it required to issue separate invoice by such company to group companies? Expenses such as Rent, Stationery, Rent a cab, Electricity, Telephone charges etc.
Replies (4)
Concept of sharing here we have ti define for example lets take rent. and Company A recives then rent onvoice in its name and recovers 50% share from company B then gst invoice is must.
Thank you for your reply.
I need help, suppose 5 group companies held in one office. All admin & Overhead expenses cost incurred by only one company & recharges to other 4 other group companies then how to prepare invoice with GST or without GST.
For e.g.
1) Rent Rs. 100000+18%GST = 118000
i want to issue issue Rs. (100000/5 + 18% GST) or
118000/5
2) Electricity Rs. 100000 I want to issue invoice Rs. (100000/5 + 18% GST or
100000/5
I need help, suppose 5 group companies held in one office. All admin & Overhead expenses cost incurred by only one company & recharges to other 4 other group companies then how to prepare invoice with GST or without GST.
For e.g.
1) Rent Rs. 100000+18%GST = 118000
i want to issue issue Rs. (100000/5 + 18% GST) or
118000/5
2) Electricity Rs. 100000 I want to issue invoice Rs. (100000/5 + 18% GST or
100000/5
You have to issue (100000/5 )+ GST 18%. you cant go under pure agent principle.
Thank you
In case of Electricity also because electricity exempt from GST
In case of Electricity also because electricity exempt from GST
Recent Topics :
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
Related Topics :
CAclubindia
