A company can make payment to an independent director as commission.
If you go by the language of Section 309(4) you may pay commission to an independent director if company by passing special resolution in GM approve such payment.
Regards
Guest
Guest
(Expert)
11 June 2009
Agreed with Mr. Garg and it will be come U/s 194H, limit is 2500 @ 10.30%
12 June 2009
still conflict b/w ankur & nitin...please give me d reply with relevant sections & rules....my own view is that - TDS section wud apply depending upon hw d director is showng it in his I.T. Return...as salary or Commission...
whethr an independent director can accept payment as commission..
Further section 309(4) wont apply as said by ankur..bcoz in companies act there is no concept of independent director..it defined only exe. or non-exe. director...sebi's listing guidelines & corporate governance define independent director...frnz i need a viable reply...
one more fact--director is receiving only comm. frm d company,nothng else.