1) This question is about to "whether (a) a trustee, and (b) a trustee who is also secretary, can receive remuneration from a trust. (information about concerned society/trust is in pt. no. 6)
2) Have searched here on the subject and found expert's useful replies, majority of the experts have answered it as (a) "Yes", "Provided, the trustee or a trustee who is also a secretary are working full time." (or 'part time'. pl. note, I haven't found part time word used in an answer here, it's my opinion. Pl correct if misunderstood or misinterpreted.) (b) "Just being a trustee, doesn't qualify for a remuneration or a salary".
3) Some answers say, (a) The deed should mention/allow this, if it's not present in the deed, amendment, change report, etc. formalities must be completed. (b) A committee meeting should be held, the proposal should be discussed, decision is taken, and in the following meeting the decision is accepted and resolution is passed, and can take effect as decided.
My query: In my case, the deed is silent on this remuneration part, nothing is mentioned. In such a case, which of the above 'a' or 'b' options is appropriate, or some other way is available while adhering to the law.
4) The answers also mention, "The remuneration should be according to 'market rate', and remuneration can be lower, but not higher than market rate."
My query: We have found the 'market rate' or 'reasonable remuneration' is trickiest thing to find or decide on. Can you share some references or credible links to find 'market rate'. Kindly advice. Options we considered to calculate remuneration: (a) The remuneration can be about 5% lower than highest paid single employee. (b) The remuneration can be about 50% to 80% of the combined salary of the three heads. (c) The remuneration can be based on some % of total combined gross salary of all the employees. (d) The remuneration can be based on some % of total yearly gross income (before any expenses deducted), of the society/trust.
5) My query: (a) If remuneration is allowed, how it has to be treated/accounted? (b) like an employee's regular salary, (with P.T; P.F; TDS, etc. applicability), or (c) just a flat honorarium)
(Your opinion/advice can be based upon the following information)
6) The society /trust / trustee / secretary in the case is- (a) The Society is based in Maharashtra. (b) It's an educational society, (running a school, un-aided, govt. recognised.) (c) Registered under societies act, and also under BPT act. (d) One of the trustees who is also working as a full time secretary (full time on site presence), looking after general administration, staff, accounts, salary, meetings, minutes, AGM, necessary compliances with various govt agencies, and such day to day work. The trustee+secretary has to look after section/department heads:3, + staff:40, +student strength: 800+ (e) Another trustee is working part time (part time or more, on site presence and outdoor work).
Kindly advice.
(We understand, that based on above information, arriving at a conclusive and absolute decision or advice is difficult. We will take your opinions/advice as guidelines from subject experts like all of you.)
Thanks all in advance!
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