Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
In Case of Profit
Maximum Remuneration to all
Company not having WTD/MD/Manager
Company having WTD/MD/Manager
ONE WTD or MD or Manager
More than ONE WTD or MD or Manager
Remuneration
In Case of Losses or Inadequate profit
Limits
Effective Capital is
< 5 Cr
5 Cr or > 5 Cr < 100 cr
100 Cr or > 100 Cr < 250 cr
250 Cr or > 250
* Calculation of Effective Capital should be done based on recent audited Financial Statement
Effective Capital
Equity Share Capital
5%
10%
60 Lakhs P.A.
84 Lakhs P.A.
120 Lakhs P.A.
120 Lakhs P.A.
0.01% of Capital in Excess of 250 cr
cial Statement
* Excluding working capital loans, over drafts, interest due on loans unless funded,
bank guarantee, etc., and other short- term arrangements
198(2)
Add:-
198(3)
Less:
198 (4)
Less:
198(5)
Add:-
Example
CALCULATION OF PROFITS [SECTION 198]
Net profit before tax and before any managerial remuneration (as per statement of profit & Loss)
Bounties and subsidies received from any Government, or any public authority constituted or authorised in this behalf, by any Gove
far as the Central Government otherwise directs.
* Profits, by way of premium on shares or debentures of the company, which are issued or sold by the company
(unless the company is an "investment company" as referred to in clause (a) of the Explanation to section 186)
* Profits on sales by the company of forfeited shares;
* Profits of a capital nature including profits from the sale of the undertaking or any of the undertakings of the company or of any pa
* Profits from the sale of any immovable property or fixed assets of a capital nature comprised in the undertaking or any of the
unless the business of the company consists, whether wholly or partly, of buying and selling any such property or assets:
Provided that where the amount for which any fixed asset is sold exceeds the written- down value thereof, credit shall be given for
higher than the difference between the original cost of that fixed asset and its written- down value;
* Any change in carrying amount of an asset or of a liability recognised in equity reserves including surplus in profit and loss accoun
the liability at fair value.
* Any amount representing unrealised gains, notional gains or revaluation of assets.
* Income-tax and super-tax payable by the company under the Income-tax Act, 1961, or any other tax on the income of the company
(e) of sub-section (4);
*Any compensation, damages or payments made voluntarily, that is to say, otherwise than in virtue of a liability such as is referred to
* Loss of a capital nature including loss on sale of the undertaking or any of the undertakings of the company or of any part thereof
written-down value of any asset which is sold, discarded, demolished or destroyed over its sale proceeds or its scrap value;
* Any change in carrying amount of an asset or of a liability recognised in equity reserves including surplus in profit and loss accoun
the liability at fair value.
Cost
Depreciation
WDV
Sale Proceeds
Profit
As per 198
XX
XX
XX
100.00
-40.00
60.00