Our co.gives directors remuneration to one of its director Rs.300000 per month. Every month entry of directors remuneration is made but the amount is actually not given to the director and transferred to directors current account.
And the director transfers app.Rs.200000 per month to the company and trandferred to current account...
What are the implication of the same as per companies act 2013 as director doesnt withdraw remuneration amount and even gives amount as loan to the company????????
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Companies act 2013 query urgent
Replies (3)
There is no implication. You have to just follow procedure as per the Act, viz. salary should be within permissible limits, Board should pass resolution for taking loan within prescribed limits etc. etc......
Sir i am asking about exact provisions like what are the limits within which a company can take loan from directors???and directors are not withdrawing remuneration actually just book entry is passed and moreover they grant loans to the company isnt it would be an alarming signal to the department that how the directors are incurring its expenditures and how they have plenty of money????????
1) Company can take loan from directors within the limits specified u/s 180(1)(c). Director can give loan to company if it is not being given out of borrowed funds.
2) As far as company is concerned, there seems to be no issue in payment of remuneration by book entry. For giving comments from the point of view of income tax of individual director, one will have to go through his personal P&L Account / return of income.
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