Dear All,
Section 196(4) and 196(5) not applicable on Private Company. But section 117(3) (c) applicable on Private Company as well in case there is variation of remuneration of MD.
So, whether MGT-14 is applicable on Private Company in such case OR the Company can abstain itself from filing form and defend it by stating sub section (4) and sub section (5) of section 196 is not applicable, therefore, MGT-14 is not required to be filed ?
Opinions are invited in this regard please.
Respected members,
A private limited company has a MD and another person as Director. Both are also Designated Partners in a LLP which was incorporated later.
The MD and the Director is paid salary from the Private Limited. Is it permissable for the MD and Director to take Partner's remuneration from the LLP. I read Sec 196 & Sec 197, and it appears that there is no such restriction for Private Limited.
Kindly advise.
remuneration
Respected members,
A private limited company has a MD and another person as Director. Both are also Designated Partners in a LLP which was incorporated later.
The MD and the Director is paid salary from the Private Limited. Is it permissible for the MD and Director to take Partner's remuneration from the LLP. I read Sec 196 & Sec 197, and it appears that there is no such restriction for Private Limited.
Kindly advise.
remuneration
Dear Members,
Kindly advise me regarding the below query :
Can Managing Director voluntarily refuse to take salary for 5-6 months as there is no operation in the company (Private Limited) and facing heavy losses due to COVID - 19 pandemic though resolution passed at the time of appointment in shareholder’s meeting to pay the remuneration and perquisites.
In this case only letter from Managing Director will be suffice or resolution need to be pass.
Thank you in advance
director
managing
remuneration
As we all know Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, has been amended by MCA wide notification dated 3rd January, 2020.
I need a clarification on the below explanation provided in Rule 9(1), it says;
“Explanation :- For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.”.
What is meant by existing on the last date of latest audited financial statement shall be taken into account.
personnel
rules
managerial
remuneration
rule
companies
appointment
query
Dear Members
Kindly send if any one having the Managerial remuneration calculation in Excel.
excel
calculation
remuneration
managerial
The applicant is an unregistered person. It has filed an application for advance ruling to determine whether salary received as director from a private limited company shall be considered for aggregate turnover for registration.
The Authority for Advance Ruling observed that as per the provisions of CGST Act, the aggregate turnover is equal to the sum of value of all taxable supplies, exempt supplies, export of goods or services or both and inter-State supplies of persons having same PAN to be computed on all India basis. It excludes the value of inward supplies on which tax is payable by a person on reverse charge basis and CGST, SGST, UTGST, IGST and cess.
In the given case, the applicant receives salary as director of private limited company. If the applicant is an Executive director of such company, he will be treated as employee of the company. In that case, the services of the applicant as an employee to the employer are neither supply of goods nor supply of services in accordance with Schedule III of the CGST Act. If the applicant is Non-Executive director, the remuneration paid by the company is liable to GST in the hands of company under reverse charge mechanism. The applicant has not submitted any documentary evidence to support whether the salary received by him is towards his services as Executive director or Non-Executive director.
In view of the above, in case remuneration is received by the applicant as Executive director then it is not includable in aggregate turnover, as it is the services given by the applicant as an employee. However, if the applicant receives remuneration as Non-Executive director, then the company is required to pay tax on reverse charge basis. Thus, the services of the applicant as a Non-Executive director are includable in the aggregate turnover, as it is the taxable services supplied by the applicant, even though the tax is discharged by the company.
If a director is getting remuneration, he is an Executive director - Is this interpretation correct as proper definition of executive director is not mentioned in the Act?
Click here to view / answer Share it onremuneration
directors
Dear All,
Please guide - Remuneration for services rendered by director.
1. Whether company have to pass any resolution??
2. Does it come under the purview of Section 188.
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director
rendered
services
remuneration
Please guide - Remuneration for services rendered by director.
1. Whether company have to pass any resolution??
2. Does it come under the purview of Section 188.
director
rendered
services
remuneration
Dear members
Whether remuneration includes perquisites if paid under sec 197 , having profits.and if anyone having excell sheet for calculation under sec 198 pls forward.
remuneration
managerial
regarding
Dear members,
In case of a private company Can the remuneration paid to director of a company be reduced irrespective of the fact that its remuneration was increased earlier in the same financial year?
If yes, What are the documents required for reduction?
remuneration
director
reduction
