09-30-2009, 09:40 PM
Dear
Risk is of disputes and litigation which may render you to suffer dis-repute for not making payments, even to the reated parties. If you are some how dependent upon such related party for any reason, say for supplies, technical assitance, common facilities sharing etc. this will endanger the continuety of your arrangement as well.
Otherwise, there is no issue. Tax department will add such liability back and levy income tax considering such payable as income. However, if in any subsequent year you will pay such payable to your related party, you will be entitled to claim such payment as admissible expense for adjustment against taxable income in the period in which it will be paid.
Regards,
KAMRAN.
Risk is of disputes and litigation which may render you to suffer dis-repute for not making payments, even to the reated parties. If you are some how dependent upon such related party for any reason, say for supplies, technical assitance, common facilities sharing etc. this will endanger the continuety of your arrangement as well.
Otherwise, there is no issue. Tax department will add such liability back and levy income tax considering such payable as income. However, if in any subsequent year you will pay such payable to your related party, you will be entitled to claim such payment as admissible expense for adjustment against taxable income in the period in which it will be paid.
Regards,
KAMRAN.
