Calculation of Commission in Final Accounts (With Illustrations)
The law permits payment of commission to managerial personnel on net profit calculated before taking into account the commission. If the profits are, for example Rs 7,20,00,000, a managing director (if there is only one) can receive up to 5% of Rs 7,20,00,000 or Rs 36,00,000 as his remuneration (the exact amount depends upon the Articles or the appropriate resolution [...]