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Director Remuneration in case of Private Limited Company
As per Companies Act , Director remuneration in case of public limited company is governed by some sections , does Director remuneration in case of Private limited company has some conditions and if not do the pvt ltd company pay a higher sum than what is reasonable to their directors ?
Replies (7)
As per company act 2013, a maximum ceiling of remuneration is exempted for Private limited company; a private company can pay any amount to the managerial provided such private company should not be a subsidiary of a public limited company.
ok thanx . While making payment to a director under which section does it get deducted 192A or 194J ? if it is as per 192A then plz specify the rates at which it gets deducted ?
Please note it all depends on director relationship with the company. if there is employer employee relationship TDS under 192(salary)..otherwise TDS194J applicable.
So do ascertain the relationship of your director with the company and deduct TDS accordingly
So do ascertain the relationship of your director with the company and deduct TDS accordingly
if there is employer - employee relationship , which normally is the case in every private limited company , then to be on safe side is it feasible to deduct TDS at the maximum rates i.e , 30% ?
Can you please tell me the Section number in which Pvt ltd co. is exempted for maximum limit of Remuneration of Director?
Sir, could you tell me the exact section number which says that private company can pay any amount of remuneration to its Directors
SECTION 297 RESTRICT ONLY PUBLIC COMPANY TO PAT REMUNERATION TO DIRECTORS BEYOND SPECIFIED LIMIT, NO OTHER SECTION PROHIBIT TO PAY REMUNERATION TO DIRECTOR...HENCE SEPERATE SECTION IS NOT REQUIRED TO EXEMPT CEILING LIMIT IN CASE OF PVT COMPANY
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