06 November 2008
I note that there are no restrictions on payment of remuneration to a Director of a Private Limited company.
1. Can the remuneration be structured in to basic pay, HRA, Dearness Allowance etc. so that he can avail of HRA exemption by submitting Rent Receipt to the company for the rent actually paid by him for the residential accommodation?
2. Also if he could also be provided facility for medical reimbursement upto Rs.15000/- per annum and reimbursement for Petrol, maintenance of car, insurance renewal of premium on car? It is understood that the company will pay Fringe Benefit Tax on the reimbursement
If so if you could you suggest text of the Board Resoluation to be passed in this regard?
07 November 2008
Rsolved that Mr.....(name)director who is incharge of....(functions entrusted)be paid remuneration for his services effective.....(date)as under:
15 November 2008
Many thanks for all the clarifications which were very precise and prompt.
Could you clarify whether the company (Pvt Ltd) needs to convene a Extra Ordinary Meeting for the purpose of passing a board resolution for payment of remuneration to one of the two Directors?
CAclubindia
