16 June 2015
a person has different companies. he is making e-payment of service tax for all companies from one company's online account. are there any complications?
16 June 2015
dear every company must be having its own bank account for the sake of simplicity & hustle free working one should pay its liability through its own account.
But now you can show the company who pays the amount as a liability or as a loan.
16 June 2015
my client has different companies like X Y Z A B. For all these companies, payment related taxes he used to pay through online account of X company as he does not have online account for other companies. whether there is any issue for such kind of payments? (Further he is asking me whether there is any Service tax liability to Company X as X is paying taxes of other companies. But as per my Knowledge company X will not incur any service tax liability for such payments)
16 June 2015
Yes u r right taht X will not be liable for service tax as Company X is not charging any fees or commission for such payments.
Now dear please tell me if u donot want to show its as loan then what else treatment would you give? Do you have other way out.
In my opinion payment made by X is a type of loan given to other companies for payment of taxes. It does not make a difference that X,Y,z etc are the companies of same person as each company has separate identity.
16 June 2015
ok and when the company will give the amount back then the same will be treated as repayment of loan are there any complications? Actually I suggested my client to have separate online accounts for all companies to avoid complications
16 June 2015
client is director of those companies and if he pays all taxes from his own account, in that case is there any problem? No doubt his account is going high by a big amount but he wants to do the same. In that situation what treatment should he adopt for those payments.
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