Directors' Remuneration - Revised Schedule VI

[vaibha...@gmail.com]

Dear Professionals,

I would like you to share your views on two points.
Where do we include Directors' Remuneration in Revised Schedule VI ?
By the above query I would like to know whether it is to be included in "Employee Benefits Expense" or "Other Expenses" ?

Further I have come to know that as per the revised schedule VI there is no need to show directors' remuneration is my info correct ?


Regards,
Vaibhav Jandey

[Dinesh kumar]

Dear Vaibhav Jandey,

• The directors remuneration should be included under the head Employee benefit expenses, Because as per Point No 9.6.4.1 of Guidance Note the term employee is defined as follows,
  

The term employee should be deemed to include directors who are either in whole-time or part-time employment of the company"

Note: Sitting fees paid to directors should be shown under "Other expenses". 

• Yes, As per revised schedule VI the company does not have the obligation to show the details of remuneration paid to the directors. But if the director is a related party, then the details of remuneration paid to directors should be furnished in notes to accounts. 

Regards,

Dinesh Vanan