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Director remuneration disallowance

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This query is : Resolved

shinu (Querist)
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06 December 2025 Need a reply..a company which has outstanding payable with regard tobdirector remuneration for years ... company not in a position to repay as due to loss....so can we treat that as income and write off through pand l account as gst is not paying as remuneration for working director..pls clarify..and we are showing like that how to make disclosure in director report and audit report

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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06 December 2025 Yes, you may treat old unpaid director remuneration as income and write it back in P&L — but only after getting a formal waiver from the director and passing a board resolution. GST is not applicable for executive director salary. Proper disclosure must be made in:

Director’s Report

Notes to Accounts

Audit Report (CARO, if material)

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