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?
1 Replies
P C Agrawal
(Registered independent director Past Ch)
(8229 Points)
Replied 27 April 2016
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.
Recent Topics
- LTCG Section (B1-B12) for RSU Sale after Jul/24
- Regarding Hackathon Prize W-8BEN India-US Tax Trea
- Digital1234
- Unable to claim Deduction in ITR 2 u/s 80 CCD(2)
- FDI-FEMA-Interest on Loan to Mauritius based wholl
- GSTR-4 Return in composition scheme
- Income tax - Forms related
- Family Pension deduction under 57(iia) in new regi
- TAN no in ITR-2
- GST RATE ON COMPOSITION MEDICAL STORE
Related Threads
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
