My client is a Spanish company and having office in india also. All the expenses relating to employees salaries, travel costs, technical advisor expenses are expended in india, and the spanish company wants to recognise these expenses in spain by giving a debit note to the office operating in india.
Can you tell me if these kind of operations are allowed in India and what is the maximum amount allowed ?
What will be the effect of taxation if debit note is issued for the same. Is there any special fiscal treatment regarding these kink of expenses ?
can we record debit note against the spanish company without accruing any payment ?
Please let me know...!!
Regards,
JK
CAclubindia
