Remunration Paid to director Non Resident status

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2011 We have manufacturing Pvt Ltd .Co of Bleaching Earth in Gujarat which is use in decolourised edible oil .Our one of the Director who is Chemical Engineer staying at USA since last 7 year's he visited to India twice in a year. (for 2 to 3 months)

Our problem is that we have paid monthly Remuneration Apex Rs 200000/- p.m.we have deducted P.Tax & PF contribution from same Remuneration. In India same return file as Non - Resident status but our Auditor told us that at the time of Assessment in I tax Dept it is very difficult to prove the same amt debited to Profit & loss A/c I tax Officer may disallow the same amt due to not staying in India.& work he has done from USA is Ok ?

As per my view he is involve in day today transaction like Manufacturing activity, Export Marketing Orders from Iran,vietnam,phillippines ect for quality of Products as well as egosiation of Rates with Parties ,Production,& in finance through mail & on Phone with all related staff & Executive.

So pl advice shall we discontinue the same remuneration with immediate effect or is there any other way to compensate the same amt to him or any rules or act the same remuneration is disallow as per I tax.

If same remuneration disclose in USA is it benifit at the time of assessment in India.?

Kindly help us & if u'r sending us under which Section as per I.Tax. it is allowable or disallow send details on same issue through email

Thanking You.

Amesh Parikh

(Manager Accounts)

M-9427002571