Write a short note on managerial remuneration norms
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Remuneration' means any money or its equivalent given to any person for services rendered by him and includes the perquisites mentioned in the Income-tax Act, 1961. Managerial remuneration in simple words is the remuneration paid to managerial personals.
Managerial renumeration includes pay, compensation or reward for work provided to a managerial person. The following types of expenditure incurred by a company are also termed as managerial renumeration.
Expenditure incurred by the company in providing rent free accommodation, or any other benefit or amenity, free of charge, to any of the company’s director and manager.
Expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the company’s director or manager.
Expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the company’s director or manager.
Expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the company’s director and manager or his/her spouse and/or child.
Expenditure incurred by the company on behalf of its managerial person for indemnifying them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they maybe guilty in relation to the company and if such person is proved to be guilty, the premium paid on such insurance would be treated as part of its renumeration.
Expenditure incurred by the company for maintenance of vehicles pertaining to personal use by director or manager.
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Managerial renumeration includes pay, compensation or reward for work provided to a managerial person. The following types of expenditure incurred by a company are also termed as managerial renumeration.
Expenditure incurred by the company in providing rent free accommodation, or any other benefit or amenity, free of charge, to any of the company’s director and manager.
Expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the company’s director or manager.
Expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the company’s director or manager.
Expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the company’s director and manager or his/her spouse and/or child.
Expenditure incurred by the company on behalf of its managerial person for indemnifying them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they maybe guilty in relation to the company and if such person is proved to be guilty, the premium paid on such insurance would be treated as part of its renumeration.
Expenditure incurred by the company for maintenance of vehicles pertaining to personal use by director or manager.
i hope it helps
Btw i have worked A lot on it..
Plz mark as Brainliest!
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Managerial remuneration norms
Explanation:
Remuneration is the compensation made for the efforts made by an individual in an organization in the form of money or equivalent. managerial remuneration as per the companies act is the remuneration of full time director of manager of the company. following norms are applicable for it.
- payment can be made to a managerial person in the form of salary, DA, commission but it should not exceed 5% of the net profit of the company for one person and a maximum of 10% can be given if more than one managerial person are there.
- few companies expenditure also form a part of managerial remuneration such as rent free accommodation to them, any facility which is provided free of charge to them, premium of insurance policy made by company etc.
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Meaning of managerial remuneration
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