SALARY TO DIRECTOR
This query is : Resolved
29 September 2010
Whether any limit to pay salary to directors as per corporate law? And also advice is it fully allowable under income tax act?
29 September 2010
Payment of Managerial Remuneration
The total managerial remuneration payable by apublic company to its directors or manager in respect of any financial year shall not exceed 11% of the net profit of the company for that financial year computed in manner laid down in section 198(1) of the Companies Act, 1956.
Remuneration payable to MD 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 all of them together.
The provision of managerial remuneration will not apply to private limited company.
Regards
CS Ajay Mishra
Payment of Managerial Remuneration
The total managerial remuneration payable by apublic company to its directors or manager in respect of any financial year shall not exceed 11% of the net profit of the company for that financial year computed in manner laid down in section 198(1) of the Companies Act, 1956.
Remuneration payable to MD 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 all of them together.
The provision of managerial remuneration will not apply to private limited company.
Regards
CS Ajay Mishra
29 September 2010
Agree with AJAY SIR
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
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Bank details not Visible on Traces Portal
- FCRA 6 E- Intimation
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- TDS ON EMAIL DOMAIN SERVICE BILL
- CAPITAL GAIN BASE ON NOTIFICATION
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- TDS Deducted AY-2013-14 Not Reflected in 26as
- 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
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
