06 January 2011
A Foreign national is appointed as Managing Director in the Public limited Company. My Question is: 1. Does his Appointment requires approval from Central Government? 2. is there any approval required from any authority for paying remuneration?
06 January 2011
As per Part I of Schedule XIII only a person who is resident in India can be appointed as MD/WTD without the approval of the Central Government.
If the foreign national is resident in India no approval of the Central Government is required. Otherwise CG approval is required.
If your company is a profit making company and is paying remuneration within the limits specified in Sections 198, 269, 310, 311, Schedule XIII, then no approval of CG is required. If the remuneration is beyond the limits specified in these sections, then CG approval is required.
23 February 2011
For the income Tax part kindly make sure that for the salary or security contributions(if any) made outside india , TDS is deducted and paid in India.
CAclubindia
