Remuneration limit for directors
This query is : Resolved
18 February 2012
Sir/Meam,
If there is 6 Director & 1 WTD than what will be the max remuneration % of net profit for 6 Director and 1 WTD...?
If there is 6 Director & 1 WTD than what will be the max remuneration % of net profit for 6 Director and 1 WTD...?
18 February 2012
TOTAL CEILING OF MANAGERIAL REMUNERATION
1. Section 198(1) limits the overall maximum managerial remuneration. The total managerial remuneration payable by a public company or a private company which is a subsidiary of a public company, to its directors and its manager in respect of any financial year shall not exceed 11% of the net profits of the company for that financial year. 2. Net profits shall be computed in a manner laid down under sections 349 and 350, except that the remuneration of the directors shall not be deducted from the gross profits. 3. However such limit is exclusive of the sitting fee payable to the directors for attending the Board meeting. For the purpose of remuneration, Directors may be classified as executive and non executive directors
1. Section 198(1) limits the overall maximum managerial remuneration. The total managerial remuneration payable by a public company or a private company which is a subsidiary of a public company, to its directors and its manager in respect of any financial year shall not exceed 11% of the net profits of the company for that financial year. 2. Net profits shall be computed in a manner laid down under sections 349 and 350, except that the remuneration of the directors shall not be deducted from the gross profits. 3. However such limit is exclusive of the sitting fee payable to the directors for attending the Board meeting. For the purpose of remuneration, Directors may be classified as executive and non executive directors
Message likes :
1 times
18 February 2012
Hi
The total manegerial remuneration payable by public company to its directors and manager in respect of financial year shall not exceed 11% of the net profit of the company for that financial year computed in the manner laid down in section 198(1).
Remuneration payable to a managing director or WTD shall not exceed 5%of the net profit for one such director and if there is more than one such director, 10% for allof them together.
In your case it will be 5% of the net profit.
Regards
The total manegerial remuneration payable by public company to its directors and manager in respect of financial year shall not exceed 11% of the net profit of the company for that financial year computed in the manner laid down in section 198(1).
Remuneration payable to a managing director or WTD shall not exceed 5%of the net profit for one such director and if there is more than one such director, 10% for allof them together.
In your case it will be 5% of the net profit.
Regards
Message likes :
1 times
Guest
Guest
(Expert)
18 February 2012
1% commission of net profit also you can pay to rest 5 directors (other than WTD) U/S 309 (4) by passing SR for a period of 5 yrs.
Message likes :
1 times
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- LC charges in relation to Asset purchased should be Capitalised ?
- Multiple trade mark
- Copyright software
- Regarding appeal to GSTAT
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Transporter Declaration form
- Taxation on Swing Trading Income (No Other Income)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
