dipakmane (students) (47 Points)
11 June 2011i have 1 query - for pvt ltd. company if 1 made written agreement with other pvt ltd company for sharing business revenue after deducting specified expenses, also they had equal sharing in assets & claiming depreciation accordingly as per clause of agreement. so in that case if 1 company making payment to other for revenue sharing what should be the nature of payment, is TDS applied to it plz help me its urgent
CA Bhushan Bhagwat Bharambe
(CA)
(81 Points)
Replied 11 June 2011
Dear Deepak,
Post you problem more properly.
It is possible to work on revenue sharing models by using Escrow Accounts.
The mechanism works as follows.
Revenue is received in this account , expenses are also incurred from this account , and the remainder is shared.
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