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Arrears salary

CA Saxena (CA) (161 Points)

10 January 2013

dear all,

greetings.

i want to know whether a company can not pay any salary in the starting months after incorporation and pay it afterwards as arrears? can i also request the relevant extract in law regarding this.

Thanks in anticipation.

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7 Replies

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 10 January 2013

salary payment is depends on employee & employer mutual consent... it can be paid some time later after incorporation.. but have to keep in mind PF & esic acts also..

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CA Saxena (CA) (161 Points)
Replied 10 January 2013

Originally posted by : CA Lokesh Pokharna
	salary payment is depends on employee & employer mutual consent... it can be paid some time later after incorporation.. but have to keep in mind PF & esic acts also..

the acts do not apply in the case and the salary is to be paid to Director. plz give your views

thanx

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 10 January 2013

yes , it can be paid as arears................i dont think any problem in it ..

.what problem you are thinking....???????

CA Saxena (CA) (161 Points)
Replied 10 January 2013

i just want things to be within legal framework. and this case is of key managerial remuneration. wanted if i copuld get sumthing to support the opinion.

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 10 January 2013

let see other views also....

as i dont have any legal conclusion on this matter............

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Nikhil Gupta (Student) (49 Points)
Replied 10 January 2013

I think it depends upon the agreement between the employee and the employer (considering u abide by the pf and esc..)

Then again, i am just a student and not fully qualified for this question :)

Nikhil Kaushik (Fellow CA) (85743 Points)
Replied 12 January 2013

Ms Saxena, The company may pay salary as and when it wishes (provided with mutual consent). However, make sure the salary is properly accrued in the books and TDS compliance is taken care of. In any case, the statutory auditor is going to ask for provision for the same!