remuneration to directors of a private company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 April 2010
Kindly let me know is there any limit for payment of remuneration to directors of a private limited company??
Aditya Maheshwari
(Expert)
27 April 2010
There is no limit prescribed for private limited companies as per Companies Act but it must be reasonable as per prevailing market conditions and moreoverso as section 40A(2) of Income Tax Act is applicable. So there you may to justify the salary remunaration paid.
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27 April 2010
Agreed with Mr. Aditya.
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Ankur Garg
(Expert)
27 April 2010
Strict provisions related to managerial remuneration are not applicable to a private company. Hence you may pay any remuneration to the director of your private company subject to the provisions of your articles.
Regards
Regards
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