Payment by foreign holding company - Asset and ITC on Computers

This query is : Open

Sagar Kumar` Rajura

Sagar Kumar` Rajura (Querist)
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19 January 2024 Hello Experts,

I would need your advise on below query.

-ABC co. has no working capital and unable to buy computers / Other Fixed Assets in India.

-XYZ co. being foreign holding company of ABC co. desires to pay the amount directly out of foreign country.

Can ABC Co. recognize as assets?

Pl advise if that is possible or if there are any legal/tax implications.

Note: ABC Startup company and holding company is paid amount directly to vendor for computers