Managerial remuneration

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CA Aman Agarwal (Querist)
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30 June 2010 Should managerial remuneration be calculated by taking net profit after tax or before tax? what is its maxi. limit for Pvt co.?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 June 2010 Section 349 states profit as per P & L a/c and hence should be after tax.

There is no limit of remuneration for PVT. ltd. co. but it should be justifiable according to the scale and nature of operations of the company.

Ankur Garg

Ankur Garg (Expert)
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01 July 2010 Strict provisions relating to Managerial remuneration are not applicable to a private company so you are free to give any remuneration. But such remuneration should be according to the articles of the company.

Thanks

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