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PF & ESI on Director Renumeration

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This query is : Resolved

Sanchit (Querist)

28 January 2022 Dear Sir,
We are a manufacturing Company incorporated in 2019 as Private Limited, There are 5 Directors in our Company.
We are facing 2 Situations-
1) 2 Directors are getting Salary of Below 18000/- p.m. and they are registered in PF & ESi & our company is deducting PF & ESI from their Salary till Jan 2022. Now they want not to deduct PF & ESI and do not want Salary income from the Company but they want Director Remuneration, whether PF & ESI will be deducted on that Remuneration or not & is their any ceiling Amount which company can pay as director remuneration.
2) 3 Directors are not taking any Salary from the Company and now Company wants to pay him Director Remuneration, So, whether there is any ceiling Limit on that and whether Company has to deduct any PF & ESI on that Remuneration.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 January 2022 1 If they don't want to deduct PF and ESIC deduction obtain a letter in writing and not to deduct as their salary will be above the limit in case of Directors remuneration.
No ceiling in case of private company.
2 No ceiling no need to deduct PF and ESI.

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