Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: cpt :: TDS :: ACCOUNTING STANDARDS :: VAT Audit :: ACCOUNTING STANDARD :: empanelment :: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT
News Headlines »
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest

Govt clears the air on FBT calculation
November, 23rd 2007
Government on Tuesday notified the rules to determine the fair market value of shares given by companies to their employees for calculating the Fringe Benefit Tax (FBT) to be paid by the employers.

Clearing the air on taxation of Employees Stock Option Scheme (ESOP), the government said FBT will have to be paid by employers on the difference between Fair Market Value (FMV) of shares and the price at which they are given to employees.

According to the notification, FMV of the ESOP for listed companies would be the average of opening and closing prices of shares on the stock exchange on the date when the employee becomes eligible for the option.

If shares are traded on more than one stock exchange, FMV will be the average of the opening and closing prices of the shares on the exchange which reports highest trading volume, the notification said.

However, in case shares are not traded on the specified day, the share price on the day closest to the vesting of option would be considered for the calculation of FMV.

In case of unlisted companies, FMV will be determined by merchant bankers on the date of vesting of option, that is the date on which the employee is given the right to apply for the shares under ESOP, the notification said.

The incidence of FBT on ESOPs will be around 34 per cent of the taxable value for domestic companies and 42 per cent for foreign companies.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions