schedule V
shivani (student) (115 Points)
13 June 2018
when to apply remuneration limit of schedule V of co.act 2013 and section 197 of co.act 2013?
1 Replies
Kartikey Jain
(Intern)
(2382 Points)
Replied 13 June 2018
Section 197 and the Schedule V of the Companies Act 2013 are only applicable on Public companies. Every public company is bound to comply with these provisions in relation to payment of remuneration to their managerial personnel (MD, WTD, managers).
As per Section 197, the total remuneration to managerial personnel should be limited to 11% of Profit. If it exceeds the 11% limit, the company would need approval from the members in a general meeting by passing SR.
Also, as per section 197, in case the company has incurred losses or insufficient profits, it shall need to comply with conditions mentioned in the concerned part of Schedule V to the act.
Section 197 is not applicable on following classes of companies:
- Private Companies
- IFSC Public Companies
- Government Companies
Recent Topics
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
Related Threads
CAclubindia
