16 May 2012
Two different companies are making seperate rent agreements with the same party for occupying a total space of 10" x 15". The office is being taken in Mumbai. The rent would be paid seperately by the two companies. Would there be any problem for these two companies in Income Tax who are taking the office on rent as the space occupied by each company would be less. Could there be any justification for the same.Please suggest urgently.
16 May 2012
It is advisable to draft a Rent agreement with proper inclusions therein regarding the division of the space being made and regarding the payability of rent in respect of the area being taken. With a proper rent agreement in hands you can be assured that no problem would arise in future
CAclubindia
