preincorporation exp - in whoose name should the bill be?
This query is : Resolved
07 September 2009
Sirs,
A Private limited company is under formation. In the mean time if the promoters are intending to invest in some computers/furnitures etc., in whoose name should they rise the bill? Whether in 'to be' director's name? or company's name( also what if the name is yet to be finalised?).
Waiting for the reply...
A Private limited company is under formation. In the mean time if the promoters are intending to invest in some computers/furnitures etc., in whoose name should they rise the bill? Whether in 'to be' director's name? or company's name( also what if the name is yet to be finalised?).
Waiting for the reply...
CA. B.SRINIVASULU
(Expert)
07 September 2009
It is not advisable to purchase before the incorporation since you will loose all excise and vat input benefits. However if the amount of investment is very low then you can purchase in directors name and after the company is formed they can sell to the company. or wait until the name of the company is finalised and bill it as prosepective company xyz pvt ltd but you will not get input benefits.
CA.Tarun Maheshwari
(Expert)
07 September 2009
The bills can be obtained in the name of Promoters but mentioning the purpose clearly. If the director is paying the amount for these purchases, then it can be brought as capital contribution by them.
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