04 July 2016
yes, it is possible. But Company will be liable to pay service tax on reverse charge mechanism. I suggest not to convert into consultancy.
04 July 2016
, You may take Service Tax Registration and Pay ST on Consultancy Fees Optionaly. To unattract PF deduction. Company may pay higher than Rs 15k.
06 July 2016
In section 188 it is mentioned that SR is required only if arrangement is more then the limits mentioned in Rules. Also below is extract wherein it is mentioned that it needs to be ratified in Board. It needs to be ratified by members only if such transaction requires SR.
(3) Where any contract or arrangement is entered into by a director or any other employee, without obtaining the consent of the Board or approval by a special resolution in the general meeting under sub-section (1) and if it is not ratified by the Board or, as the case may be, by the shareholders at a meeting within three months from the date on which such contract or arrangement was entered into, such contract or arrangement shall be voidable at the option of the Board and if the contract or arrangement is with a related party to any director, or is authorised by any other director, the directors concerned shall indemnify the company against any loss incurred by it.
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