Varsha (CS) (130 Points)
14 May 2011Dear friends,
We had appointed a Director's relative coming under section 314b, whose mthly remuneration exceeds Rs. 50000/- for which we applied to Central Govt. But the application has been rejected. Now do we require to recover excess remuneration paid to the relative in F.Y.2010-11?
what can be the accounting effect as TDS, Pf and all is already deducted in 10-11?Whether we can take the refund in 11-12?
Pl reply urgently.
Varsha
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 14 May 2011
Yes, the remuneratin monetaryor any perquisite or advanctage enjoyed by him, on and from the date on which the soffice was so held by him is liable to be refunded to the Company.
The company can waive the recovery of any sum refundable to it after obtaining the permission by the Central Government.
nidhigoel89
(Company Secretary )
(594 Points)
Replied 14 May 2011
Hello,
Currently as per the new notification issued by MCA no CG approval is required as the limit 50000 is substituted by 2,50,000.
Regards
Nidhi
Varsha
(CS)
(130 Points)
Replied 15 May 2011
Ya ,
The 314b limit has been increased to 250000 in this year, but in our case the approval sought by CG was for 9-10 and 10-11 which has been rejected recently. Now the question is whether the excess remuneration paid is to be refunded back to the company of these two years and how to account in this year 11-12 as TDS,PF etc has already been deducted in earlier years on excess amounts.
Pl advise urgently.
Regards
Varsha
CAclubindia
