Section 197 applicability on private limited companies

[kapil dudeja]

Dear members,

Please help me with the following query:-

Section 197 is not applicable on private limited companies. Does this means that private limited can pay any amount to their directors/managerial persons without any limit?

-Thanks

[Arjun Hebbar]

Dear Mr. Kapil,

Yes! Private Limited Company can pay any amount as a remuneration to it's Directors without any limit. 

Thank You

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[kapil dudeja]

Thanks sir for replying. Can you please quote exemption notification or section in this regard.

-Much Thanks

[ACS Poonam Jain]

Dear Sir,

Please note that the payment of remuneration to directors is covered under section 197 and as per MCA notification dated 5th June 2015, section 917 is not applicable on private companies.

Attaching the same for your reference. However others views solicited.

 

Regards

Poonam.