What is the exact meaning of "inadequate profits" under Schedule V of Companies Act, 2013? Please could you clarify with an example.
Menu
Inadequate profits under sch v
Replies (2)
Example:
Remuneration being paid to a director : Rs.10 lacs p.a.
Max. permissible remuneration to a single director : 5% of net profit
Hence company's net profit should be minimum : Rs.2 crores (10x100/5)
Actual net profit for the year is : Rs.50 lacs
Here we say that profit is inadequate to pay decided remuneration to the director.
Thank you Mr. Agarwal
Recent Threads
- Contest Time barred ADT-02
- Form 26QB error, how to claim refund
- Turnover limit for goods & service
- Conversion of old B2Cs invoices to B2B
- Tax implications on brokerage
- Showing f&O loss and intraday profit in ITR
- REBATE RECEIVED FROM FOREIGN PARTY AFTER MAKING PA
- How to fill in csv file for Schedule 112A
- Gst 2a and Gst 3b difference
- What happens if a taxpayer forgets to file ITR but
Related Threads
CAclubindia
