Managerial Remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 If a Director is appointed two years back and his remunerstion exceeds the limit prescribed in Shedule XIII, then in that case form 25A will be filed? Please suggest.

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

15 December 2010 Yes, since the remuneration exceeds the limits specified in Schedule XIII you will have to apply to CG for approval of remuneration in Form 25A. The form needs to be filed within 90 days of appointment. Since it's delayed you will have to apply alongwith your application for condonation of delay.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 but the field in form 25 A asks to fill the detils for 3 years. Now if he is not associated with the company from last three years it is not possible to fill that field
Further the form is not getting prescrutinised due to that reason.

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

15 December 2010 Details of his remuneration for the preceding three years will include remuneration drawn from previous employers. In your case due to late filing you will be filling in the details pertaining to the current employer for two years and 1 year details from the previous employer. If application is made in time, it will show the details of remuneration drawn from previous employers for all 3 years.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 And what if the person was employed earlier?

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

16 December 2010 Give the details of remuneration drawn during the previous 3 years. If not employed, fill the column as "0". In any case attach a detailed letter justifying your action for fixing a higher remuneration giving instances of higher remuneration paid in other similar companies.

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