Director's Remuneration

Queries on Director Remuneration: 1. Person's name is appearing as a manager in Trade License but doesn't have visa from the company. He is being paid monthly remuneration will it fall under Director remuneration and subject to VAT or can be treated as salary / remuneration to Executive Director which are not subject to VAT? 2. Person's name is appearing as a manager in Trade License also he is the share holder of the company. Doesn't have visa from that company. He is being paid monthly remuneration will it fall under Director remuneration and subject to VAT or can be treated as salary / remuneration to Executive Director which are not subject to VAT?

Replies
Akshaya Khandooja13/02/2020 19:55:40

The moot point in the query is when/how a person shall qualify as employee of the companywhether a person wii

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Akshaya Khandooja15/02/2020 21:35:35

Apologies..The moot point in the query is when/how a person shall qualify as employee of the company. In both the scenarios the person does not have visa of the company. Accordingly, i believe he is not an employee of the respective company and thus there will be VAT implications. Further, now if the person is a non executive director of the company ( on the premise that hes a shareholder or a manager), then in such a case he should charge VAT on the consideration recieved by such person.

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Naishad soneta16/02/2020 02:07:09

I agree with Akshaya that in both the cases, the person should not be considered as an employee as he is not on the Company's VISA. Also, if a person is not an employee of the Company, the said person should be required to charge VAT (subject to crossing the mandatory threshold) on any fee or remuneration received by him from the Company.

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