29 October 2016
Hi , i have a query regarding Related party transaction
The situation is our client is a Director of a Company ,Example CWC Company, now his son who is neither a Additional or Managing Director draws Salary in the concerned company. The Director also draws Salary.aliadte
* Now my question is the Director Son Drawing salary allowable? * Does it require a Board Resolution ? * Any consequences ?
Can u please validate the above query with relevant supportings and Section!
29 October 2016
as per the provisions of the Companies Act 2013, if the son of the Director is drawing the salary in professional capacity then such salary is allowable. But if he is drawing the salary in the capacity of the son of the Director, then such Salary is not allowable
CAclubindia
