Hello,
The rental agreement is between Firm Y and the owner. Its renewed every year. But from past few months the business of Firm Y is almost near to closing.
Another “Firm X” is using the premises now and paying rent to the owners in the name of Firm Y because of mutual understanding between them.
But the agreement is still in the name of Firm Y as one of the partner of Firm Y is the employee of Firm X.
Rent is paid from past 7 months. Amount is Rs.35000 per month. TDS Rs.3500 is also paid but under TAN of Firm Y. ( from Sep 2012 to March 2013).
Can Firm X claim rental expenses in its business.
If not then what are the other options.
CAclubindia
