Payment to Founders of Indian Pvt Ltd Co
This query is : Resolved
26 February 2021
Hi, How do we pay to Founders of the Private Limited Company who have not yet become directors for the reimbursement of expenses done for the company like Flight charges, Hotel, taxi etc?
Do they have to raise a Reimbursement invoice under Professional Services?
If they provide all the supporting of the reimbursement then do we have to deduct tax under 194J?
What if they become shareholders? Does becoming shareholders give them any right to get money from company other than dividend?
What are the founder's rights?
Do they have to raise a Reimbursement invoice under Professional Services?
If they provide all the supporting of the reimbursement then do we have to deduct tax under 194J?
What if they become shareholders? Does becoming shareholders give them any right to get money from company other than dividend?
What are the founder's rights?
26 February 2021
Yes, raise invoice under professional services. TDS applicable under section 194J.
Founder share holders only can get dividend.
Founder share holders only can get dividend.
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