Directors per month salary or reuneration

This query is : Resolved

ashok yadav (Querist)
Follow

30 June 2012 Please anybody can tell about the maximum salary permissible as per Company Act to the director of a Limited Company

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

30 June 2012 According to Section I of Part II of Schedule XIII, a co. having profits in a F.Y. may pay any remuneration, by way of salary, D.A., perquisites, commission and other allowances, which shall not exceed 5% of its net profits for one such managerial person, and if there is more than one such managerial person, 10% for all of them together.

Section II of Part II of Schedule XIII,govern the cases in case of absence or inadequacy of profit & has mentioned the different ceiling limits calculated on the
effective capital of the company

The provisions contained in Section 198 and 269 read with Schedule XIII are applicable only to (a) a public limited company and (b) a private limited company, which is subsidiary of a public Company.

Ajay Mishra

Ajay Mishra (Expert)
Follow

30 June 2012 Hi

Total ceiling of managerial remuneration:

Section 198(1) relates to overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits. The total managerial remuneration payable by a public company or a private company which is a subsidiary of a public company, to its directors and its manager in respect of any financial year shall not exceed 11% of the net profits of the company for that financial year. Such net profits shall be computed in a manner laid down under sections 349 and 350, except that the remuneration of the directors shall not be deducted from the gross profits.
Remuneration is payable to all the directors including managing and whole-time directors and in any capacity. Therefore, it includes the remuneration for services rendered by him in any other capacity other than that of a director.

Message likes : 1 times

ashok yadav

ashok yadav (Querist)
Follow

03 December 2012 Thank you sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Nikhil Vyas

Sharang Sanjay Mangalekar

CA Reshma prabhu

sriram deven

John Ravindran Moses

Subscribe Now

Directors per month salary or reuneration

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

GST CONSULTANT

CA Final

Manager- Finance and Compliance

Accountant

Senior Executive