19 October 2010
As per section 44AB in case of a partnership firm, the remuneration and the interest should be mentioned in the partnership deed, then only it is allowed, the question is, is there any such condition for director remuneration and their sitting fees to claim as a allowable expenditure, and the remuneration to director iif it is not fixed officially (through resolution ) what is the consequenses.......
19 October 2010
NO such conditions, however the duly passed resolution are the requirement of Companies Act and in the absence of such resolution the IT authorities may contend that the provision of a regulating authority have not been followed, thus the company does not have any authority to pay such payments, thus not allowable.
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