HI,
I HAVE A PVT LTD COMPANY AND I HAVE A PART TIME DIRECTOR,U.K. CITIZEN WITH DUAL CITIZENSHIP OF INDIA, WITH SHARES OF 90%. DOES INCOME TAX AS WELL AS COMPANIES ACT 1956 ALLOW THE REMUNERATION OF SUCH DIRECTOR (IF YES UPTO WHAT EXTENT)?
VIVEK (MANAGER) (26 Points)
30 December 2009HI,
I HAVE A PVT LTD COMPANY AND I HAVE A PART TIME DIRECTOR,U.K. CITIZEN WITH DUAL CITIZENSHIP OF INDIA, WITH SHARES OF 90%. DOES INCOME TAX AS WELL AS COMPANIES ACT 1956 ALLOW THE REMUNERATION OF SUCH DIRECTOR (IF YES UPTO WHAT EXTENT)?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 30 December 2009
Hi,
Strict provisions relating to remuneration of directors are not applicable to a private company. So there is no need to worry as far as payment of remuneration by a private company is concerned. However check your articles for any kind of restriction on remuneration.
Best Regards
Suresh Savaliya
(CS )
(62 Points)
Replied 30 December 2009
If your UK Director is 'Non resident Indian', you can pay remunration to him in India Rupee only as per RBI Circular.
Suresh S.
Cs, LL.m
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
