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Janani (Jr. Executive)     13 August 2015

Employee profit sharing policy in india

Hello Everyone! 

I would grateful if anybody clarifies the below things which I'm not aware of.

(i) The legal requirements / consequences in executing a profit sharing agreement between a Private Limited Company & its employees?

(ii) Is it actually possible for a Company to share its "profit after expenses" with its employees?

Thanks in advance! 

 



Learning

 4 Replies

Kumar Doab (FIN)     13 August 2015

Employer can not pay lower than Min Wages as in Min.Wages Act.

Therre is no celing on paying more than that or on any kind of taxable non-taxable perks or even sharing.

 

It shall be certainly better to reduce in writing and retain original copy.

 

It shall be better to consult your CA for tax implications.

1 Like

Janani (Jr. Executive)     13 August 2015

Thank you so much Mr. Kumar Doab.

Kumar Doab (FIN)     13 August 2015

You are welcome.

It shall be better if any agreement that is to be signed is drafted by your able Labor Law Consultant/Service Matters Lawyer/Law Firm.

 

Janani (Jr. Executive)     17 August 2015

Sure & Thank you for your valuable suggestion.


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