Can a Director of the Pvt. Ltd company be paid rent at the beginning of each month? Does it conflict with the advance payment clause for directors in Company Act 2013?
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Office rent to director at the beginning of each month
Replies (1)
Sec.185 of Companies Act 2013 prohibits giving loans to directors. 'Advance' again supply of goods or services is not loan if it is in the normal course and usual trade practice. In your case also it can be argued accordingly provided it is a genuine transaction and premises have been in fact used by the company till the month end.
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