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Director Remuneration in case of Private Limited Company

14 May 2018

As per Companies Act , Director remuneration in case of public limited company is governed by some sections , does Director remuneration in case of Private limited company has some conditions and if not do the pvt ltd company pay a higher sum than what is reasonable to their directors ?

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7 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 14 May 2018

As per company act 2013, a maximum ceiling of remuneration is exempted for Private limited company; a private company can pay any amount to the managerial provided such private company should not be a subsidiary of a public limited company.

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Gourav Rungta (27 Points)
Replied 14 May 2018

ok thanx . While making payment to a director under which section does it get deducted 192A or 194J ? if it is as per 192A then plz specify the rates at which it gets deducted ?

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 14 May 2018

Please note it all depends on director relationship with the company. if there is employer employee relationship TDS under 192(salary)..otherwise TDS194J applicable.
So do ascertain the relationship of your director with the company and deduct TDS accordingly

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Gourav Rungta (27 Points)
Replied 14 May 2018

if there is employer - employee relationship , which normally is the case in every private limited company , then to be on safe side is it feasible to deduct TDS at the maximum rates i.e , 30% ?

Akash Gupta (2 Points)
Replied 09 August 2018

Can you please tell me the Section number in which Pvt ltd co. is exempted for maximum limit of Remuneration of Director?

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Shubham Thakur (2 Points)
Replied 20 June 2019

Sir, could you tell me the exact section number which says that private company can pay any amount of remuneration to its Directors

Sanjay Shrivastava (Article) (28 Points)
Replied 23 August 2019

SECTION 297 RESTRICT ONLY PUBLIC COMPANY TO PAT REMUNERATION TO DIRECTORS BEYOND SPECIFIED LIMIT, NO OTHER SECTION PROHIBIT TO PAY REMUNERATION TO DIRECTOR...HENCE SEPERATE SECTION IS NOT REQUIRED TO EXEMPT CEILING LIMIT IN CASE OF PVT COMPANY