Professional Fees Given to Director

This query is : Resolved

Juhi (Querist)
Follow

18 November 2010 Kindly help me out as regard to any formalities that needs to be complied with in an infrastructure based company pays Professional Fees to its Director who is an Architect by Profession.
TDS u/s 194 J is deducted and paid.
Any particular compliance / reporting required under Company Law

Ankur Garg

Ankur Garg (Expert)
Follow

18 November 2010 Please go through proviso to section 309(1). The same fee must be approved by the board through a board resolution.

Kindly go through section 309 very carefully.

Also share the status of company...whether it is public or private..?

Message likes : 1 times

udit sharma

udit sharma (Expert)
Follow

19 November 2010 Hi....

Any fees paid to the Directors for the services rendered by them in their professional capacity shall not be included in the remuneration of Directors provided:

1. The services rendered by the Director are of a professional nature, and

2. In the opinion of the Government the Director possess the requisite qualification for the practice of the profession.

Hence,in addition to what Ankur Sir said as per my opinion,u will have to make an application under section 309(1) to the Central Government for the purpose of obtaining a certificate from it stating that in its opinion, the Director concerned possesses the requisite qualification for the practice of the profession.

However, the provisions of section 309 of the Companies Act, 1956 are not applicable to a Private Company which is not a subsidiary of a Public Company.

Best Regards and God Bless u

Udit Sharma

Message likes : 1 times

Juhi

Juhi (Querist)
Follow

19 November 2010 Thanks to all for the valuable Guidance.

In the mentioned case, the company is a Private Company. So approval of Board shall be sufficient.

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

THUSHAR MURALI KRISHNA

Rajesh

Frank

Amit Bhatkar

Shailesh Prajapati

Subscribe Now

Professional Fees Given to Director

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANCY

GST CONSULTANT

Manager- Finance and Compliance

CA Final

Senior Executive