Remuneration to directors
This query is : Resolved
15 April 2010
In a Pvt Ltd company, Can a director who is a doctor be paid salary as well as consultancy fee. Also discuss the TDS implications thereon
15 April 2010
Strict provisions relating to managerial remuneration are not applicable to a private co. unless it is subsidiary of a public company.
Hence u r free to give any remuneration to your director subject to the provisions of your articles.
Regards
Hence u r free to give any remuneration to your director subject to the provisions of your articles.
Regards
15 April 2010
Yes it can be paid. But if consultancy fee is alied to his salary then it is also treated as salary for TDS purpose.
15 April 2010
Oops i forget to mention about section 314. This section is applicable to a private company.
If you pay your director any consultancy fee over and above the remuneration to which he is entitled as a director than in that case section 314(1)(a) would become applicable and you have to collect approval of shareholders by way of special resolution before paying any fee in addition to remuneration.
If you pay your director any consultancy fee over and above the remuneration to which he is entitled as a director than in that case section 314(1)(a) would become applicable and you have to collect approval of shareholders by way of special resolution before paying any fee in addition to remuneration.
16 April 2010
@ Ankurji,
Thankyou Ankurji, But any hindrance in paying the director a consultancy fee along with his remuneration, he being a qualified doctor?
@ Srinivasulu Sir,
Can't a stand be taken that such an amount is for his specialized service as a doctor and is not a remuneration but a Consultancy fee on patient basis, over and above his remuneration acting as a director
Thankyou Ankurji, But any hindrance in paying the director a consultancy fee along with his remuneration, he being a qualified doctor?
@ Srinivasulu Sir,
Can't a stand be taken that such an amount is for his specialized service as a doctor and is not a remuneration but a Consultancy fee on patient basis, over and above his remuneration acting as a director
17 April 2010
amount paid as consultancy services are taxable as professional services taxable under sec 194 J
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
- Reopen of assessment proceeding
- Is any professional CA is here please reply
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Putting a heading on received mail
- Experts need help
- Foreign lottery ticket bought online from India: legality, tax and consequences
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- 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
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
