Direstor's salary

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Guest

Guest (Querist)

16 October 2010 Sir plz tell me how the director's salary is governed in case of pvt' ltd.co. ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

16 October 2010 In case of Pvt Ltd company there is no bar on Managerial Remuneration as in Ltd company from Companies Act perspective.
From point of view of Income Tax Act you are required to deduct TDS u/s 192 just like TDs on salary paid to employees.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

17 October 2010 Continuing Gupta Ji, quantum of remuneration / increase in remuneration should be reasonable for example with respect to the nature of business, qulification /expertise of the director etc., otherwise disallowance attracts under the Income tax Act,1961.

Ajay Mishra

Ajay Mishra (Expert)

18 October 2010 Hi

The provisions of managerial remuneration of Companies Act, 1956 read with Schedule XIII to the Act is not applicable to private company.

The remuneration payable to directors of private company is governed by their own articles.

Regards

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