amount paid to Director

Harinder (student) (219 Points)

22 July 2011  

Dear All;

If a Director draws a fixed amount from a private limited company, will this amount be subjected to applicability of TDS.

If an agreement / appointment letter, confirming the employer-employee relationship is issued to Director, will we be able to show this amount as salary from the company?

Director insists that company should pay a fixed amount to him regularly on a monthly basis.

Kindly advice if any otherway possible.

Thanks in advance.