In light of the recent amendment of Schedule V read with Section 197 for directorial remuneration in case of loss or inadequate capital where the remuneration is calculated basis the effective capital. How will we treat the remuneration of a director (not a managerial director) who is a professional person providing Office of profit for professional services , will he be allowed the payment or it’s still disallowed?
If allowed, will it be included in the limits of Schedule V or its over and above the amounts mentioned therein
Tushar ChoudharyBeginner
CA final Law Directors
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Yaa amount paid to director in his professional capacity is allowed it will not affect whether the company is in profit or loss
This payment will not be included in limit provided under sch V
And Plz attach the recents amendment in reply or answer section so I can give a more elaborate answer