04 June 2015
Mr. A is a director in 2 private ltd companies.
He has got a plot in on which he wants to built a building and want to give the premises on rent to above two Companies. The rent has not yet been decided.
Can both companies pay rent to Mr. A? What would be the implications under the New Companies Act and under the Income Tax Act. Is there any monitory ceiling to pay rent to a related party.
05 June 2015
No. The board is only composed of family members. No disinterested directors. In this context, is a board resolution sufficient to validate the payment?
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