Director salary clarification

You can pay salry either monthly remuneration or as fees for per meeting, in case of fees per meeting there is no limit you can pay any amount, but in case of Monthly salary you need to follow schedule XIII.

Originally posted by : CS Bijoy
	You can pay salry either monthly remuneration or as fees for per meeting, in case of fees per meeting there is no limit you can pay any amount, but in case of Monthly salary you need to follow schedule XIII.

sir i dont knw wat does schedule x11 says??can u plz clarify?

1.how to pay salary for the months april to august?-

u need to follow the requisite/applicable  proivisions of the C.A'56 eg. sec 198,309,269, sch XIII, C.Gov approval

U may pass a res. in the remuneration and board mg. to pay salary from 1/4/11 and pay salary upto sept'11 as dues in oct'11.

Remeber, if the dir. is/are executive ie. MD/WTD/CEO then a resolution to be passed in GM for appt. as well for remuneraion - 269, 310/311

2.in what ratio to pay salary? -

It is a co. and not a p/s firm, hence no ratin to be calculated. for amt.of salary it is purely the managment diescretion, based on profitability of the co. 

If they r shareholders then rewarding by dividend could be a good idea. chk on that.

3.can salary be paid in cash or cheque payment is mandatory? - chq.

4.what is the tax implication of payment of salary? -

individual dir. will be taxed. for sal. amt. with perquisites, if any.

Co. need to cut TDS on monthly basis and to issue f/16 on annual basis.

5.can only 1 director b paid the salary only?

- it is purely the managment diescretion, based on profitability of the co.