Can a Director (of Pvt. Ltd. Co.) be paid escalated remuneration?
say for example : Rs. 1.00 lakh in 2005-06, Rs.1.50 lakhs in 2006-07 and again Rs. 1.00 lakh in 2007-08
Raajasekar (Finance Manager) (37 Points)
14 July 2009Can a Director (of Pvt. Ltd. Co.) be paid escalated remuneration?
say for example : Rs. 1.00 lakh in 2005-06, Rs.1.50 lakhs in 2006-07 and again Rs. 1.00 lakh in 2007-08
sudhir gautam
(CA Final)
(145 Points)
Replied 14 July 2009
Dear Sir
You can pay the director remuneration at any rate in the private limited company.The Auditors of the company will show under the head payment to sepecified person in the notes
Dear Raajasekar,
As per rules remuneration should be : -
Less than Rs. 1 Crore (Effective Capital)
|
Rs. 75,000
|
More than 1 Less than Rs. 5 Crores
|
Rs. 1,00,000
|
More than 5 Less than Rs. 25 Crores
|
Rs. 1,25,000
|
More than 25 Less than Rs. 50 Crores
|
Rs.1,50,000
|
More than 50 Less than Rs. 100 Crores
|
Rs. 1,75,000
|
More than Rs. 100 Crores
|
Rs. 2,00,000
|
Gargi Ranade
(CS)
(619 Points)
Replied 14 July 2009
Hi Rajasekar Sir,
I totally agree with views of Sudhir Gautam sir, Scetion 269 does not apply to Private Limited Company which is not subsidiary of Public Company. Hence you can pay any amount of remunaration to Director
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 14 July 2009
Yes you may pay escalated remuneration to director of a private company as there is no restriction in Law.
Regards
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India