Remuneration to director
This query is : Resolved
02 September 2013
I have a urgent query . If anyone can please help me with this .
A person is a MD in ABC pvt ltd co and receiving remuneration of 1.5 lakhs .
He is a director in other XYZ pvt ltd co. Now the XYZ wants to give him the same remuneration of 1.5 lakhs .
Now what is the procedure ? can the director get the remuneration ?
Thanks in advance
A person is a MD in ABC pvt ltd co and receiving remuneration of 1.5 lakhs .
He is a director in other XYZ pvt ltd co. Now the XYZ wants to give him the same remuneration of 1.5 lakhs .
Now what is the procedure ? can the director get the remuneration ?
Thanks in advance
02 September 2013
Yes he can receive the remuneration….there is no problem…
02 September 2013
is there any need to change his designation from director to MD.
And what is the procedure ?
And what is the procedure ?
02 September 2013
A person cannot be an MD in 2 companies…thus, there is no violation in your case…
So, he can receive the commission…not problem…
But what is your perception????
So, he can receive the commission…not problem…
But what is your perception????
02 September 2013
Hi
Yes, he can get the remuneration, because the provision of section 269 and remuneration provisions is not applicable on private limited companies.
Yes, he can get the remuneration, because the provision of section 269 and remuneration provisions is not applicable on private limited companies.
02 September 2013
The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
02 September 2013
Actuly the director is non-executive .
I doubt whether we need to change his designation to executive director ?
I doubt whether we need to change his designation to executive director ?
02 September 2013
Yes, need to change designation of such director.
If you are going to pay remuneration then you will change the position in Board meeting.
If you are going to pay remuneration then you will change the position in Board meeting.
02 September 2013
Thank you so much experts .
02 September 2013
yes director can receive salary from two companies.
tds on his salary will be deductible u/s 194j
tds on his salary will be deductible u/s 194j
02 September 2013
Strict provisions related to managerial remuneration are not applicable to a private limited company. So he can take remuneration from both companies subject to the provisions of articles of the company.
Thanks
Thanks
02 September 2013
Further the position of MD in one company signifies that he is devoting his whole time in that company. So taking remuneration from other company may be objectionable and should be avoided.
However current question is about private company so you may go ahead.
However current question is about private company so you may go ahead.
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.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
