Sitting Fees for Internal Auditors

Hello!

Sitting fee provision are mainly given in Articles of Association of a Co. And as per that the co is bound to pay sitting fee to its director.......I dnt think that a internal auditor is liable to receive the sitting fees....Rest chk ur articles......And as far as Amount is to be paid as sitting fee Then as per Notification No. GSR 580(E), dated 24-7-2003, the government has increased the fees payable to directors of public companies and private companies which are subsidiaries of public companies for attending the Board meetings and Committee thereof w.e.f. 24-7-2003 as under:

(a) Companies with a paid-up share capital and free reserves of Rs. 10 crore and above or turnover of Rs. 50 crore and above shall be paid sitting fees not exceeding the sum of Rs. 20000; and

(b) Other companies shall pay sitting fees not exceeding 10000 rs. 

 

Regards

Nidhi

Nidhi is right.  Sitting fee is payable to directors who attend the board meetings. Internal auditors are paid fixed fees for their audit work. Attending Audit Committee Meetings / Board Meetings and presenting their reports in the meetings is incidental to their work.

I completely agree with learned members. To attend the audit committee meeting and give answer to them is a part of work of Intenal Auditors. No, extra money will be paid to internal auditor unless and until articles or appointment letter provide for that.

 

Completely agreed with all the answers.

Internal Auditor appointed by the company to do the Internal Audit and submit the report to the Board/ Committee.

The company makes payment for their services.

Thus Internal Auditor cannot charge the sitting fees. they are paid for their services. further they can charge out of pocket expenses for the Audit.

Thanx

Rajeev Nayak 

Dear i completly agreed with all the answers Firstly Internal Auditors demanding sitting fees for board meetings is totaly wrong as this is incidental to their work.. there is no such clause in the Co's Act related to sitting fees to Internal Auditors. all conditions related to their fees n term of engagement are contained in Letter of Engagement.. refer Letter of Engagement and check out the provisions therein.. Sitting fees to them is totaly depend on the agreement. If there is no such clause then silmply you can refuse to pay them

I am not agreed with the answers that sitting fees can not be paid to the Internal Auditors... as Companies Act does not restrict Companies to pay sitting fees to the internal auditors. Sitting Fees can be paid to Internal Auditors if Letter of Engagement containes this