Dear Friends,
A small company has two directors who are also the promoters and the company has been paying a monthly remuneration of Rs 1.50 lacs to each since a long time.

From March 2020, the company has been facing a financial a cash flow crunch due to lockdown. The directors decided to a voluntarily reduction in their remuneration and draw a lower remuneration than 1.50 lacs.

In FY 2020-21 they drew full 1.5 lacs for first 5 months then half remuneration for rest of the year. In FY 2021-22 drew 40k each for 6 months and then full remuneration for rest of the year and for current FY 2022-23 they propose to draw 50% remuneration for 1st half and full remuneration for the next half year.

The auditor objects to this saying that you can't change the remuneration voluntarily as it will affect the TDS to be deducted from their salary. I personally disagree with the auditor as there is no restriction on payment of remuneration of Directors in a small Pvt. Company and that too when the directors want to help the company to manage the cash flow.

Please share your views :

1. Whether there is any problem in the voluntary reduction of salary by directors.

2. Can the company pass a single board resolution in the beginning of the each FY for a voluntary reduction in remuneration by the Directors without specifying the amount by specifying a reduction upto say 75% of their actual remuneration depending upon cash flow of the company .
Thanks & regards

PC Joshi

TDS deducted for logistics company comes under which (Section) nature of payment?
What is the difference between section 94c and 194c under TDS?

Mr. X is landlord and Mr. Y is builder
They have entered in to Joint Development Agreement
Mr. Y will Construct total 10 flats (7+3)
7 for builder and 3 for land lard
Here builder has to pay GST on all flats (7+3)
Each flat sale value is 15,00,000

doubt:
here builder will collect consideration for 7 flats due to he directly sales to customers and he can pay GST and he shows as sales in GSTR1 and GSTR3B

he is ready to pay GST on remaining 3 flats but he did not take any consideration from landlord, then where we can show this transation in GST Return

Sir,
One of the it person maintained three banks 1. sb account balance rs:24,568/-
2.bank sb account balance rs:56,356/-
3.bank sb account balance rs: 89,455/-
As on dt: 31-03-22.
Question:
Assessess above mentioned all banks
accounts information transaction data AIS show compulsory.

Hello to all the members of caclubindia.
I am CA Final Student and have cleared my PCC in May 2010 then i got married so due to family responsibilities I was unable to clear my Ca final but now after a long gap I want to complete my CA. I have also registered for the new course. I really need ur help if u all can guide my about the way how can i start as i am totally new for the new course.

Kindly advise my what is the reference books that I can follow and how to start my studies.

sir
can commission income earned under 194h and 194d be claimed as business receipts showing as professional income thereby claiming 50% expenses.

Sir,

What are the extant guidelines regarding the provision for bad debts. Whether every Company needs to pass this entry or any condition is there for the this provision. Also whether provision for bad debts is a tax deductible expense?

Regards

Hi,

I understood that Indian customer cant do payment in foreign currency to Indian company. But i want to know can they raise invoice in Foreign currency to Indian entity. If yes, what is impact on GST. Thanks

HI,
In October 2021, I converted my Sole Proprietorship business to a Private Limited Company.
Queries :
1. Whether I have to file 2 Income tax returns for FY 2021-22 i.e for Sole proprietor as well as company? If 1 return is to be filed, whether income from sole proprietorship business to be reflected in Books of Accounts of the Company?
2. I was using my Old GST number till February 2022. Will that have any penalty?
3. Please explain the accounting treatment in both entity's books

KIND ATTN. SIR
WITH REGARD TO NOTICE RECEIVED U/S 148, THE ASSESEE HAS MADE BANK TRANSACTIONS TO THE TUNE OF RS.1,78,00,000/- BUT NOT FILED THE INCOME TAX RETURN FOR THE AY 2018-19.KINDLY GUIDE US TO FILE THE INCOME TAX RETURN AND 44AB AUDIT REPORT APPLICABILITY AND PAYMENT OF PENALTY FOR NON FILING OF AUDIT REPORT AND FILING OF RESPONSE THROUGH ONLINE
THANK YOU SIR
WITH REGARDS
CA.P.SHANGAR