Director

Deepak Jain (article assistant) (59 Points)

22 June 2015

Hello everyone,

I wants your suggestions on following transactions related to director,s , which i came to know while doing statutory audit of a Private Limited co..

1. Can a director take salary from his company, If yes , then to what extent ? If not, what he can take from company ?

2. company incurred travelling expenses for foriegn visit by director, is it permissable ?

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2 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 25 June 2015

Hi,

If the director is involved in day to day activities of the company and he is employed like any other one, he can draw the salary from company.

If the foreign travel epxenses are of business purpose, it is allowable else if its personal trip, they can not be allowed.

Thanks,

Suri

1 Like

Deepak Jain (article assistant) (59 Points)
Replied 25 June 2015

Originally posted by : CA Suri Kota
	Hi, If the director is involved in day to day activities of the company and he is employed like any other one, he can draw the salary from company. For remuneration, check this link - /articles/a-glance-on-managerial-remuneration-in-co-act-2013--20418.asp If the foreign travel epxenses are of business purpose, it is allowable else if its personal trip, they can not be allowed. Thanks, Suri