Managerial remuneration

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This query is : Resolved

Saloni Dhawan (Querist)

28 May 2013 pls tell me while calculating managerial remuneration under companies act, 1956 we disallow all the provisions na or some r allowed as there is some real problem relating to a company and some person is saying provision for bonus and gratuity is allowed but as we have studied in IPCC , all provisions are disallowed

Ajay Mishra

Ajay Mishra (Expert)

22 June 2013 Following perquisites is allowed:

Perquisites allowable to expatriate managerial person including a NRI
Besides perquisites as stated above, an expatriate managerial person including a Non-Resident Indian shall also be eligible to the following perquisites which shall not be included in the computation of the ceiling on remuneration specified above:—
(a) Children's education allowance: In case of children studying in or outside India, an allowance limited to a maximum of Rs. 5,000 per month per child or actual expense incurred, whichever is less. Such allowance is admissible upto a maximum of two children.
(b) Holiday passage for children studying outside India/family staying abroad: Return holiday passage once in a year by economy class or once in two years by first class to children and to the members of the family from the place of their study or stay abroad to India if they are not residing in India with the managerial person.
(c) Leave travel concession: Return passage for self and family in accordance with the rules specified by the company where it is proposed that the leave be spent in home country instead of anywhere in India.
For the purpose of above said benefits, family means the spouse, dependent children and dependent parents of the managerial person.

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