Managerial remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 Dear All,

Query:

1. Companies Act, 1956 does not prescribe any valuation rules for valuation of perquisites provided by company to its whole time directors or MD's, is the valuation of perquisites shall be considered as per the Perquisites Valuation Rule, of Income Tax Act, like car benefit... What will be the valuation???

2. Rent free accomodation provided by company, Company pays remuneration directly to landlord. However, there exist no agreement between the company and landlord. The agreements is between director and the landlord. Can the company do so??? and wht will be the valuation in that case for managerial remuneration.

3. The terms of appointment of whole time director is for a period of one year, In that case provision made for gratuity form part of remuneration?

Regards,

P.K. Shaw

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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17 September 2012 For What Purpose You Need Perquisite in Companies Act???

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 Ayush Agarwal...Company is providing car to its Managing Director... its a perquisites. What will be its value???

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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17 September 2012 Whatever Expenses You Are Incurring on That Particular Thing, Just Make Debit All That Related Expenses to Director Remunerations & Benefits.