Remuneration
This query is : Resolved
06 May 2017
Mr A (executive director)drawing salary from ABC limited and PQR Pvt Ltd .. if we have to calculate maximum remuneration ceiling under companies act than we have to club salary drawn from ABC Limited and PQR Pvt Ltd together..??
06 May 2017
Dear
The limit for remuneration under companies act is on company, not on person.
the limit applies on company basis.
06 May 2017
okay, suppose abc limited can pay maximum remuneration to its director 50 Lakh according to effective capital. now we have to include the remuneration received by MR X from PQR limited also with 50 lakh ceiling under ABC ltd
21 July 2025
Great question! Let me clarify:
Under the Companies Act, the remuneration ceiling is applied by each company individually, not on the total amount a director receives from multiple companies.
So, in your example:
ABC Limited has a maximum remuneration limit of ₹50 lakh for its directors based on its effective capital.
PQR Pvt Ltd will have its own separate limit based on its effective capital.
The ₹50 lakh ceiling applies only to the remuneration ABC Limited pays to Mr. A — it does not include salary Mr. A receives from PQR Pvt Ltd.
Summary:
Remuneration limits are per company, not aggregated across all companies where the director works.
So you do not club remuneration from different companies when calculating the maximum permissible remuneration ceiling under the Companies Act.
Under the Companies Act, the remuneration ceiling is applied by each company individually, not on the total amount a director receives from multiple companies.
So, in your example:
ABC Limited has a maximum remuneration limit of ₹50 lakh for its directors based on its effective capital.
PQR Pvt Ltd will have its own separate limit based on its effective capital.
The ₹50 lakh ceiling applies only to the remuneration ABC Limited pays to Mr. A — it does not include salary Mr. A receives from PQR Pvt Ltd.
Summary:
Remuneration limits are per company, not aggregated across all companies where the director works.
So you do not club remuneration from different companies when calculating the maximum permissible remuneration ceiling under the Companies Act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- FCRA 6 E- Intimation
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- Bank details not Visible on Traces Portal
- Journal entry of busniess expenses
- EXPORT COMMERCIAL INVOICE HSN CODE
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- Cash balance limit and property purchases limit
- Filling ITR - U
- Form 140 tds
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
