Directors remuneration related

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2016 Dear Experts,
Section 197 of companies act. Is
not applicable on pvt. Ltd. Companies
Hence private company can provide
The remuneration to its directors as much as they can. My query is... assume xyz pvt. Ltd. Is giving Rs. 3 Lakh PM remuneration to its director weather section 40A(2)(b) of income tax also allow the remuneration of 3
Lakh by private company to its director or not,

Regds
Ankur jeswani

CA Shubhang Goyal

CA Shubhang Goyal (Expert)
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24 September 2016 Director's remuneration is calculated on the basis of companies MOA. If the company is required to get audited under IT act then it should be mentioned as a related party transaction under clause 23 of 3CD as well as in Notes with balance sheet.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2016 Sir, in my opinion remuneration is calculated on the basis of AOA Not MOA, however if i mention it as party related transaction then it will be allowed by IT deptt. Or not