Professional fees to fist director of Company

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priyank (Querist)
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19 July 2010 Hello, I am a CA and have just started a new engineering private ltd. company with my father (who is an enginner). Myself and We have our four family members as the first directors of the Company. Now my question is that I wish to draw professional fees for the services I am rendering to the Company ( I am handling day to day affairs of the Company), instead of salary. Is this possible and what are the alternatives such that I can draw professional fees. (reason being I have huge business loss from my previous business which I need to set off in Income Tax). Please respond

Rasesh

Rasesh (Expert)
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22 July 2010 Drawing of professional fees would attract the provisions of Sec 314 and the approvals as per the remuneration drawn will apply.

Another option is that you become a managerial personnel in the company like manager, WTD, MD and draw salary without any limits.