Filing form mr 1 for kmp

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Akash Verma (Querist)
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08 January 2015 Dear experts,

We need to file MR 1 for apppointing Managing director in a company.

In the MR 1, the salary details are to be given in absolute numbers. However, this MD will be getting 5% of profits before tax. In this case, how do we proceed as the absolute number is not available since the exact profit will be known only in the year end.

Please suggest how to fill this form and ensure compliance.

c.bakshi

c.bakshi (Expert)
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11 January 2015 dear frd, fixed a compensation which is not more than the amount of 5% profit taking an average on the basis of past years. this is a threshold limit 1%, 5% or 11%