MANAGERIAL REMUNERATION
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 June 2010
FACTS
The company proposes to pay royalty @4% of the net profits to one ordinary director for the purpose of using the trademark held in his name.
Presently the board comprises more than one Whole time directors and remuneration is paid to them.
The querry is whether the aforesaid royalty to be paid to the director to be included in the ceiling limit of remuneration given under section 198,349 & 350. (i.e.As per sec. 198 11% of net profits and as per sec. 309 1% )
Whether the said royalty can be considered as commission. If it can be so considered as commission, i understand that only special resolution is required and CG approval not required as it cannot be considered as monthly, quarterly, annual payment. Pl. advise on the same.
The company proposes to pay royalty @4% of the net profits to one ordinary director for the purpose of using the trademark held in his name.
Presently the board comprises more than one Whole time directors and remuneration is paid to them.
The querry is whether the aforesaid royalty to be paid to the director to be included in the ceiling limit of remuneration given under section 198,349 & 350. (i.e.As per sec. 198 11% of net profits and as per sec. 309 1% )
Whether the said royalty can be considered as commission. If it can be so considered as commission, i understand that only special resolution is required and CG approval not required as it cannot be considered as monthly, quarterly, annual payment. Pl. advise on the same.
29 June 2010
Even the royalty paid to director is only a remuneration paid and hence the ceiling undre the section 198 , 349 & 350 will apply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
