Hello Friends,
My Company's paid up capital is 1 crore and its also give 60000 monthly remuneration to its Director.
Is it related party transaction ? and company need to be taken approval from shareholder?
Menu
Section 188-related party transcation
Replies (4)
No since monthly remuneration does not exceed rs.250000, yes its a related party trnsc
Payment of remuneration to director doesnt cover under sec 188. So its not a related party trnsaction
| Originally posted by : ACS Divesh Goyal | ||
 |
Payment of remuneration to director doesnt cover under sec 188. So its not a related party trnsaction |  |
Salary to director is not a office of place and not covered under section 188 as rightly pointed by our learned Member.
The salary to director can not be considered as a RPT U/S 188 as the monthly salary paid by the company to the director is in lieu of his whole time services towards the company.
Rightly accorded by both the seniors above.
Recent Topic
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
- Professional advance taxes
- Surrender pan process
Related Topics
CAclubindia
