30 December 2009
Company A & Company B are are sharing 1st floor of a premise. Company A & B by mutual agrrement decided to go for renovation of first floor. It was decided that Company A will pay for whole renovation and afterward company A will raise a debit note on company B for their share of expenses. All bills of renovation are on the name of company A which include VAT & Service tax also. How the cost can be allocated to Company B so that there in no problem in the assessment related to VAT & Service tax.
02 January 2010
it is clear that whatever the debit note will be raised subject to the agreement will be treated as the amount of loan from A to company B. however there is no question of adding vat or service tax in the debit note amount. further it is not clear and also neccessary that whether company A has in its name the rent agreement of full premises or both A & B. in that case tretment would be of different nature.
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