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Can director waive rent of office to be receivable by compan

Pvt ltd 523 views 2 replies

vasoya ankit

Practice

137 Points Joined March 2009

Can Director waive rent of office to be receivable by company?

our company is pvt ltd company. and premises are owned by director who has permitted through simple rent agreement to run company on rent. now can director waive his right to receive rent from company.

Replies (2)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Yes, he can. However, ITO may add notional income in his assessment. Further, agreement without consideration may not be enforceable under Contract Act, which should be kept in mind.