CA Amit Kumar Shrivastava (CHARTERED ACCOUNTANT) (104 Points)
06 July 2010Q-1 Can A CEO of Public Company take Professional Fee (as remuneration Say Rs.125000 Per month)?
Q-2 Is Salary Slab rate is applicable on Professional Fee?
Q-3 What deduction is allowed against this Fee
Q-4 Is salary allowances r applicable on it?
Plz Reply me , I am waiting , & helpless .
Thnx & Regards (Manager -A/c & Finance) of the Pub Co.
Ashish Gupta
(CS & Legal)
(114 Points)
Replied 06 July 2010
I think that profesional fees shall form part of the remuneration of CEO and salary slab is applicable on it.
Rgds,
Ashish
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 07 July 2010
1. YES (Without any formality or approval provided he is not a director)
If the CEO is also a member of board i.e. if he is a director then proviso to section 309(1) shall apply. In other words you have to satisfy CG regarding his qualification failing which the same professional fee will be considered as managerial remuneration.
2. NO….
If the CEO is also a member of board i.e. if he is a director then proviso to section 309(1) shall apply. In other words you have to satisfy CG regarding his qualification failing which the same professional fee will be considered as managerial remuneration and counted in salary percentages.
3. TDS…
4. Break up of professional fee is in your hand but should be approved as per HR policy of your company. If there is no policy in force then it is advisable to approve the same from board.
Regards
CAclubindia
