Commission paid

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2011 Dear Sir,
Can Commission be paid from a Pvt Ltd Co. to HUF of Directors.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 July 2011 If the HUF of a director is engaged in the business of commission, either in a firm name or in its own name, and providing such services to others also, commission may be paid.
In other cases, it can not be paid.
The reporting requirement under the Companies Act and in Tax audit will deal with such issues and can be specifically interrogated by the authorities.

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