09 May 2011
Dear Sir, Kindly forward me format of Agreement of Commission to be given to director. Also, is it possible to give 50% commission of total income to director? Required to deduct TDS on the same?
10 May 2011
In case of public limited companies and their subsidiaries, payment of managerial remuneration is subject to the limits specified in Section 198, 309, Schedule XIII and other relevant provisions of the Act.
Overall managerial remuneration inlcuding commission should not exceed 11% of the net profits of the company.
However limits on managerial remuneration is not applicable to private companies and they are free to pay any amount as remuneration / commission to its director.
CAclubindia
