06 January 2012
I have a peculiar query: A pvt ltd Company ABC places an order with another company XYZ. The goods are delivered by the XYZ company to the premises of ABC company alongwith all the documents (CHallans etc) except Invoice. Invoice is sent by a differant company PQR to ABC, also payments are done to PQR by ABC. So for all accounting purpose PQR is the supplier for ABC.
My query is are there any adverse implication with regards to income tax assessment ?
06 January 2012
Hi Dhaval, This type of transactions are normal in real business and thus it would not impact on I.T assessment. The only thing is that the transaction should not have been fake and in this case it is adviceble to pay some consideration as commission to middle party XYZ Ltd just to make this transaction acceptable in the eyes of law.
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