Clarification on Schedule XIII

The Government has issued the following clarification, with regard to Schedule XIII :

It is clarified that for the purpose of salary and perquisites under revised Schedule XIII, the effective capital will have to be calculated as on the last date of

the financial year preceding the financial year in which the appointment is made or in which the remuneration is fixed or revised. However, in those cases

where companies have been incorporated in the same financial year in which the appointment had been made or the remuneration has been fixed or

revised, it would be in order for such companies to make the appointment or fix/ revise remuneration with reference to the effective capital as on the date

preceding the date of appointment.