14 June 2012
A Section 25 Company passed a resolution in BOD meeting approving payment of sitting fee which is more than the slab prescribed by Act , i.e. Rule 10b.
It falls in the slab of 10000, however approved Rs. 20000 and also paid to the director for first BOD meeting(by deducting TDS).
Now this mistake was discovered after the 2nd BOD meeting was over. The sitting fee payment of 2nd BOD meeting is kept on hold due to this. What is the best way to resolve it and to realise the extra payment made in first BOD meet?
14 June 2012
There is no problem in deduction of higher TDS only you have to with accounting effect i.e. you have to bifurcate 20000/- by following way; 1) Show 10000/- as sitting fees as per you discuss in BOD. 2) Show 10000/- as advance paid to director for any reason & pass necessary agenda for that purpose.
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