director remuneration
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 September 2010
can director's salary be increased or decreased according to profit of the company?
13 September 2010
In the case of a profit making company the provisions of Section 1 of Part II of the Schedule is applicable.
Accordingly the company can pay managerial remuneration upto 5% of net profits to one such managerial person and if there is more than one person, 10% of the net
profits for all of them put together.
However, if the company incurred losses or earned inadequate net profits in any subsequent financial year,then Section II of Part II will apply automatically.
Accordingly, the company has to either
a) re-fix the remuneration within the applicable ceiling limits specified in Section II of Part II.
or
b) obtain the approval of the Central Government for payment in excess of the Schedule XIII limits
Accordingly the company can pay managerial remuneration upto 5% of net profits to one such managerial person and if there is more than one person, 10% of the net
profits for all of them put together.
However, if the company incurred losses or earned inadequate net profits in any subsequent financial year,then Section II of Part II will apply automatically.
Accordingly, the company has to either
a) re-fix the remuneration within the applicable ceiling limits specified in Section II of Part II.
or
b) obtain the approval of the Central Government for payment in excess of the Schedule XIII limits
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
