Corporate Professional
Company Secretary
[ Scorecard : 34]
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Posted On 15 June 2012 at 12:30
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1.Whether we can pay to the Director who is not a Chartered Accountant,company Secretary or Advocate as a consultancy expenses who is having vast experience in accounts,taxation and business under Section 314 to the companies act as a legal and professional expenses by deducting TDS of professional @ 10%.
2.In case yes,then what is the maximum limit for making payment per month without central Government approval.
3.Whether limit of Rs 250000 PER MONTH without central government approval applicable to Directors relative under section 314 (b) is applicable to directors under section 314(a) also or not.
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CS Ankur Srivastava
Company Secretary & Compliance Officer
[ Scorecard : 13467]
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Posted On 15 June 2012 at 12:35
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In reference to your query, this is to inform you that as such in the discussed notification, wherein the limit of Rs. 50000 has been enhanced to Rs. 250000 per month, the changes were made only in the Director's Relatives (Office or place of Profit) Rules, 2003.
Therefore, any appointment of the relative may be made by only Special Resolution upto the salary of Rs. 2.5 Lacs per month.
However, in case of directors you may pay him professional fees. However, it would fall under section 314(1). In this regard you need to obtain Central Government Approval in case the remuneration exceeding Rs. 50000 per month. Otherwise only Special Resolution would suffice the purpose if the remuneration ranges within the limit of Rs. 50000 per month.
Such notification is also attached herewith for your ready reference.
Attached File : 112299 996911 g s r 303 e 06apr2011office of place of profit.pdf downloaded 84 times
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Corporate Professional
Company Secretary
[ Scorecard : 34]
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Posted On 15 June 2012 at 12:40
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Thankyou Ankur Sir for your prompt, short and to the point reply.
Actually i was confused and you have cleared the topic.
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Ankur S Kumar
CA
[ Scorecard : 194]
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Posted On 15 June 2012 at 13:39
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Dear 'Corporate Professional'
Is your real name Ankur Srivastava ?
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Corporate Professional
Company Secretary
[ Scorecard : 34]
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Posted On 15 June 2012 at 13:43
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Ankur Sir is my Teacher cum boss...
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Corporate Professional
Company Secretary
[ Scorecard : 34]
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Posted On 15 June 2012 at 13:49
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But what is the reason of this question.....
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Ankur S Kumar
CA
[ Scorecard : 194]
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Posted On 15 June 2012 at 14:03
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Ah ! Don't take any offense dear, I was just curious that how can this seemingly complex question be answered along with an attachment in just 4 minutes !
Also nice to know that you have developed such an amount of respect for Ankur Sir in just 1 day of membership !
By the way what's your real name ?
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Corporate Professional
Company Secretary
[ Scorecard : 34]
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Posted On 15 June 2012 at 14:14
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I know him before registering myself to this portal. Actually he adviced me to join caclub india to sharpen my knowledge...Even he himself done my registration...
This is Shashank Agarwal here.. will change details as soon as i edit my profile....
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Corporate Professional
Company Secretary
[ Scorecard : 34]
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Posted On 15 June 2012 at 14:17
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Are you the moderator of this site...??
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Ankur S Kumar
CA
[ Scorecard : 194]
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Posted On 15 June 2012 at 14:22
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Excellent ! But being a CA club member himself, why he did not register you with your real name ? This is a good practice used by our esteemed members. And since he is your boss, then what is the need to use this forum. I mean, why don't you go to his room and ask questions? Please do not take any offence as this is just a friendly talk. 
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