9911796707
TMI BlogAppointment of and/or payment of remuneration to managerial personnelX X X X Extracts X X X X X X X X Extracts X X X X ..... panies 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 crore rupees 1,50,000 (v) rupees 100 crore or more rupees 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 notice of the Government justifying their proposal. 5. Deficiencies generally observed in respect of the applications on the above subject are listed below:-- (i) Application fee is not paid in proper ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an 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) Figure of turnover, net profit as computed under section 198 of the Companies Act, as projected/unaudited for the year in which the application is made, is not given even if the application is made towards the end of financial year/after the end of financial year, unaudited figures of working results are not furnish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson 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-IT (B), dated 5th November, 1999. It has been observed that companies sometimes indicate the value of perks stating that the same is as per the Income-tax Act. This is not the correct position and value of perquisites included in the total remuneration under section 198 of the Companies Act is to be indicated as per actual cost. Income-tax liability as per CBDT Circular is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 appointment/reappointment. (x) Monetary value of total remuneration in rupees or rupees equivalent drawn by the proposed appointee during last three years from the applicant company or any other company. (xi) Copy of the directors report and the audited accounts of the company for each of the last five financial years of the company. (xii) Each column of the application is filled up. (xiii) Copies of FIPB approvals, in case of foreign collaboration/investment. (xiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
