Can a company get salary from other taxpayers???
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 March 2014
can a company get salary from other tax payers such as Individual, Firm, HUF, other companies, trusts, societies???????
Reply Soon...
Reply Soon...
18 March 2014
The answer is a BIG NO.
.
.
A company is an artificial person which is managed by Board of Directors.
.
.
A company is an artificial person which is managed by Board of Directors.
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 March 2014
Thanx for replying Sir...
Can you please tell me the provision or section where in it is mentioned that being an artificial person company can`t get salary as source of income...
Can you please tell me the provision or section where in it is mentioned that being an artificial person company can`t get salary as source of income...
20 March 2014
Only a LIVING PERSON can be "EMPLOYED."
.
.
From the question raised by you it seems you WANT to pay SALARY to a COMPANY "ANYHOW" hence you are TRYING to ESTABLISH it.
.
.
The correct answer is :
.
DIRECTORS of a COMPANY are paid SALARIES because they are LIVING PERSONS employed under the company.
.
.
If you assume that a company can be paid a salary then firstly reply the following:
.
.
1. How would you make ATTENDANCE of the COMPANY as an EMPLOYEE?
.
2. How would you allow LEAVES, LEAVE TRAVEL CONCESSION, GRATUITY, PENSION, "CHILDREN EDUCATION ALLOWANCE" etc. to a COMPANY?
.
.
Hope now your doubt is clear.
.
.
.
From the question raised by you it seems you WANT to pay SALARY to a COMPANY "ANYHOW" hence you are TRYING to ESTABLISH it.
.
.
The correct answer is :
.
DIRECTORS of a COMPANY are paid SALARIES because they are LIVING PERSONS employed under the company.
.
.
If you assume that a company can be paid a salary then firstly reply the following:
.
.
1. How would you make ATTENDANCE of the COMPANY as an EMPLOYEE?
.
2. How would you allow LEAVES, LEAVE TRAVEL CONCESSION, GRATUITY, PENSION, "CHILDREN EDUCATION ALLOWANCE" etc. to a COMPANY?
.
.
Hope now your doubt is clear.
.
20 March 2014
FINALLY :
.
.
Can we gift TOYS to a BARBIE DOLL?
.
.
Hint :
.
(Toys = Salary & Barbie Doll = Employee)
.
.
Interesting, here SALARY can be really paid but the person must be in EXISTENCE to ACCEPT it physically.
.
.
Can we gift TOYS to a BARBIE DOLL?
.
.
Hint :
.
(Toys = Salary & Barbie Doll = Employee)
.
.
Interesting, here SALARY can be really paid but the person must be in EXISTENCE to ACCEPT it physically.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Exiting partner in partnership firm in gst portal
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- Error in uploading Form 10BD
- NRI INSURANCE ADVISOR
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Sale of Mutual Funds In Diffirent Financial Years
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
