Muhammed
(Chartered Accountant)
(251 Points)
Replied 18 December 2018
The question depends on various facts : Are we paying salary directly to employees or holding company is paying them. In the first case it would not be under salaries and in the second case we can debit the salary as inter company transaction and usually holding company reimburses the same..
M.Prabhu
(Tax Professional)
(101 Points)
Replied 18 December 2018
Muhammed
(Chartered Accountant)
(251 Points)
Replied 19 December 2018
In the case of holding company paying the salary, subs. company will not be charging the same to Profit & Loss account, debiting the holding company as receivable. I hope the point gets cleared
CAclubindia
