03 July 2012
What would be the nature of Income in the form of Remuneration of a Promoter Director of a Private limited company ? and What if he received such Income in the nature of DIvidend ?
04 July 2012
Normally the Directors (promoter or otherwise)receive income on account of Salaries, Professional Services, Interest on loan given to Company, Dividend, share of Net Profit, Various Perks like Car Servant Rent Free Accomodation etc. etc.
As Dividend is declared and paid depending upon the net profit of the year or accumulated reserves so payment of remuneration in the shape of Dividend will not a be healthy, valid and wise decision.
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