Remuneration to director u/s.40A(2)

DIRECTOR REMUNERATION IS NOT EXCESSIVE

Hi Bro.,

Whether any payment is excessive or not is something which is to be decided on the facts of each case.

The three points that u have mentioned substantiate this statement. My understanding says Case Laws can't be referred in support of question of facts.

Lot many aspects are involved and the question of excessive can't just be decided on the figures.

It is something similar to the concept of materality that differs from situation to situation & from person to person for the same situation.

As for as my knowledge goes Sec 40A(2) may not apply for Director Remuneration.

Having said this, the Directors remuneration shall be in accordance with the provisions of Companies Act.

The provisions of Sec 198,309,310,349,350 etc., should have been complied

thanks for reply..........

Regards

K.ilayaraja

agree with CA Madhusudan B.P.