Profit or place of profit

This query is : Resolved

Chandan Gupta (Querist)
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29 October 2012 Dear Members,

Please provide your valuable suggestions:-

A director who is also a Chartered Accountant and receiving any amount for his professional services provided to company.

The question is, will this case be treated as office or place of profit under section 314 or not?

Thanks

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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29 October 2012 ca is only providing professional services in said case hence it will be place of office...........

Chandan Gupta

Chandan Gupta (Querist)
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29 October 2012 thanks for prompt reply...
but as per my understanding professional services provided by director will not cover under section 314. and further section 309(1)(a) also provide that any amount paid to director for providing professional services shall not be considered as remuneration to director.

Please clairfy....

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Ajay Mishra

Ajay Mishra (Expert)
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29 October 2012 Hi

Any amount received by a director other than director remuneration is covered under section 314.

For Example;

If Mr. X receive a remuneration of Rs. 200000 p.m. and prviding service free of cost he is not covered under section 314 but if he receive Rs. 1 in addition to Rs. 200000 for providing professional service then for such Rs. 1 he will be covered under section 314 of the companies Act, 1956.