15 April 2009
Rates prescribed in Schedule XIV to the Companies Act, 1956 are not mandatory . But as per section 349 and 350 for the purposes of calculation of managerial remuneration availability of profits for distribution as dividend, the rates prescribed in said schedule shall have to be applied.
But what if we are not distributing dividend and we calculated net profit for managerial remuneration separately then what will be the position.........???
15 April 2009
Section 198(1) of Companies Act 1956 states that maximum managerial remuneration can be 11% of net profit calculated u/s 349/350 of Companies Act. So dep. has to be calculated as per Schedule XIV
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