TaxTMI 
TaxTMI 
Appointment of and/or payment of remuneration to managerial personnel
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....on 198(4) read with Schedule XIII to the Companies Act, 1956, which provides scales of remuneration (salary, dearness allowance, perquisites and any other allowance). 2. The scales of monthly remuneration prescribed in Para 1 of Section II of Part II of Schedule XIII have since been revised vide notification GSR No. 215(E), dated 2nd March, 2000. The revised scales are as under:- Where the effective capital of the company is Monthly remuneration payable shall not exceed (i) less than rupees 1 crore rupees 75,000 (ii) rupees 1 crore or more but less than rupees 5 crore rupees 1,00,000 (iii) rupees 5 crore or more but less than rupees 25 crore rupees 1,25,000 (iv) rupees 25 crore or more but less than rupees 100 ....
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....ations. (ix) Expansion/diversification/modernisation/technology up-gradation. (x) Qualification, experience, period of association and contribution of the proposed appointee. (xi) Requirement of personal skill and challenges ahead. (xii) Past remuneration of the proposed appointee. (xiii) Creativity/innovativeness of the proposed appointee/company. (xiv) Recognition/award obtained by the proposed appointee/company. (xv) The amount of remuneration proposed to be paid including salary, allowances, perquisites and whether it will have any effect on the overall financial health of the company. (xvi) Any other factors relevant to the proposal, which the company may like to bring to the....
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....any other company during the past 3 years prior to the proposed date of appointment is not indicated in terms of monetary package. (viii) Requirements of section 316(2)/(4) of the Companies Act are not followed where the proposal is for appointment as managerial person in two or more than two companies and resolution is not passed by all the companies concerned. (ix) Estimated project cost and source of finance together with projected equity, position regarding growth in effective capital, projection of turnover and net profit as computed under section 198 of the Companies Act, for the next five years is not given as required in column 4 of the application [Forms 25A and 26] in respect of new companies. (x) Figur....
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....but for such expenditure by the company would have been incurred by any of the persons aforesaid; and (iv) to effect any insurance on the life or to provide any pension, annuity or gratuity for any of the person aforesaid or his spouse or child. The term 'salary' under the provisions of the Income-tax Act, 1961 has been defined to include all payments received by a person in employment and includes wages, fees, commission, perquisites, profits in lieu of or in addition to salary, advance salary, pension, gratuity, encashment of leave, etc. Certain items of perquisites are, however, excluded to the extent permissible for the purpose of payment of income-tax as per Central Board of Direct Taxes Circular No. 781[F. No. 275/192/99-I....
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....ment as managerial personnel in two or more companies the manner in which compliance of section 316(2)/(4) has been made. (vi) Reasons for loss/inadequacy of profit, steps taken to improve the financial performance and future projections. (vii) Full and proper justification for proposed appointment/remuneration. (viii) The manner in which compliance of section 269(2) of the Companies Act was met at the time of appointment/reappointment of the managerial person where mid-term increase in remuneration is proposed. (ix) Application for condonation of delay under section 637B of the Companies Act along with justification and requisite application fee where the application was not submitted within 90 days of date of....