Dear Sir/Mam
I want to ask that what are the items covered under the meaning of managerial remuneration as per companies act, 1956.?
Thanks
CA Rachit Gupta (Chartered Accountant) (1315 Points)
27 August 2010Dear Sir/Mam
I want to ask that what are the items covered under the meaning of managerial remuneration as per companies act, 1956.?
Thanks
Govind Rathore
(CA Final)
(543 Points)
Replied 27 August 2010
Dear Rachit Gupta,
For the purposes of this section and sections 309, 310, 311, 381 and 387, "remuneration" shall include,-
(a) any expenditure incurred by the company in providing any rent free accommodation, or any other benefit or amenity in respect of accommodation free of charge, to any of the persons specified in sub-section (1);
(b) any expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the persons aforesaid;
(c) any expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the persons aforesaid; and
(d) any expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the persons aforesaid or his spouse or child.]
Jagruti (CS)
(Service)
(1953 Points)
Replied 28 August 2010
Also any payment or reimbursment to director will be trated as remuneration & same should be within the limit approved by the members else it will be trated as Office or place of profit held by a Director
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