Jagdish (Accountant) (84 Points)
25 January 2018Co A sells the machines of Co B to Co C and earns commissions from both the parties. Co A is entitled to recovery of expenses incurred from Co B.
a) Does Co A need to raise the invoice and collect GST on the same and at the same time, Co B deducts TDS on the amount or
b) Does Co A just present the details of expenses incurred and Co B discharges its liability by raising a voucher for the payment?
Please Help
RAJA P M
("Do the Right Thing...!!!")
(127455 Points)
Replied 25 January 2018
Jagdish
(Accountant)
(84 Points)
Replied 25 January 2018
Yes... exactly...
Now the dilemma is the treatment of expenses incurred.
a) Whether to raise the bill for claiming the expenses or can we claim the expenses directly from the company (A) whose machine was sold.
b) If the Invoice is raised, it will amount to charging the GST (on expenses incurred) and whether the paying company too will have to deduct the TDS?
CAclubindia
