Transection between to Companies eg Sale, Purchase, & on behalf Payments

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Pradeep Tiwari (Querist)
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23 December 2021 Hi,
Dear Experts please help on can be do transections between two different companies where is same director/partners have share holdings. transections like
-Payments on behalf of each other .
- Sale-Purchase.
-Payments of Govt dues etc.
Kindly help & provide the section of Income tax if possible.

B Sathyanarayanan

B Sathyanarayanan (Expert)
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23 December 2021 yes , you can do and it is nothing but related party transaction and it required approval of board .This is covered under arm length under income tax act section is 92F(II).