24 June 2010
A Ltd is a 100% subsidiary of B Ltd. Both are indian companies. The management of B ltd is devoting part of their time in managing the affairs of A ltd. For Managing the affairs, Can A Ltd charge on management fee (no profit margin) to B Ltd.
Questions are:
1. Can A Ltd raise a bill for reimbursement of manpower expenses? Since it is reimbursement, there will be NEITHER TDS NOR SERVICE TAX IMPACT.
24 June 2010
QUESTION IS NOT CLEARED. IF B LTD IS HOLDING COMPANY. AND DEVOTING TIME IN A LTD. THEN B LTD WILL CHARGED FOR ITS DEVOTED TIME, NOT A LTD. A LTD IS GETING SERVICES OF B LTD.
CAclubindia
