Interest on advances/guarantee commission paid to directors Whether the same are to be included in remuneration of directors for purposes of the section

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..... ‑ Interest on advances/guarantee commission paid to directors ‑ Whether the same are to be included in remuneration of directors for purposes of the section Query : Section 309 provides, inter alia, that the remuneration payable to the directors of a company as determined by sub‑section (1) of section 309 shall be inclusive of the remuneration payable to such director for servi .....

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..... any other capacity. Answer : Payment of guarantee commission to a director of the company is a remuneration received by him for doing some service to the company, viz., undertaking liability in respect of the guarantee of the loan taken by the company. Such a remuneration would, therefore, fall within the purview of section 309. The payment of interest to directors for advancing loans to the com .....

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