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Company remuneration

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Nidhi Prajapati

Accountant

109 Points Posted on 08 October 2021

Dear Experts,

I need yours suggestion on director remuneration,if director has its own proprietor firm and is also director in Pvt. ltd.

and pvt. ltd has not good financial condition ,can he take his remuneration from his firm and pay tds from company.

Replies (2)

Quick Summary

This discussion explores whether a director, who also owns a proprietorship firm, can receive remuneration from their firm instead of a struggling private limited company. The consensus suggests that direct capital withdrawal from the proprietorship firm is feasible, bypassing the need to route it through the private limited company. This approach aims to circumvent issues related to the private limited company's poor financial state.

Kev Men

790 Points Posted on 08 October 2021

Since he has a propietorship firm, he can directly withdraw capital in the form of remuneration as required by him. There is no need to route it through company in my humble opinion.