remuneration to directors of a private company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2010 Kindly let me know is there any limit for payment of remuneration to directors of a private limited company??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 April 2010 There is no limit prescribed for private limited companies as per Companies Act but it must be reasonable as per prevailing market conditions and moreoverso as section 40A(2) of Income Tax Act is applicable. So there you may to justify the salary remunaration paid.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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27 April 2010 Agreed with Mr. Aditya.

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Ankur Garg

Ankur Garg (Expert)
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27 April 2010 Strict provisions related to managerial remuneration are not applicable to a private company. Hence you may pay any remuneration to the director of your private company subject to the provisions of your articles.

Regards

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