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: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: cpt :: form 3cd :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: TDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT RATES :: due date for vat payment :: ACCOUNTING STANDARD
 
 
ę News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

Unlisted cos doubt over FBT on Esops may be cleared soon
November, 03rd 2007
The income tax department may clear the remaining confusion over calculating fringe benefit tax on employee stock options (Esops) for unlisted companies.  Sources said the department has been asked for clarification on the issue from various quarters.

At present, it is studying the matter and is likely to take a call on coming out with a clarification, prescribing the method to calculate the fair market value of unlisted shares.

An official, however, said, As of now, our earlier notification for FBT on Esops stands and merchant bankers will decide the method to calculate the value.

Many companies and tax experts have pointed out that while for listed companies, the departments rules are very clear, for unlisted companies a fair bit of confusion remains.

In its rules notified late last month, the department has not prescribed any particular methodology, only stating that it will be up to merchant bankers to calculate the fair market value for unlisted companies.

Experts say it can be calculated using a number of methods, which use different parameters and accordingly give different values. For instance, one of the ways of calculating the fair market value of a share is to use the profit earning capacity value of a company.

The fair market value under this method depends on estimated profitability of the company in future, taking into account various factors such as type of industry, economic risk, expected future contracts. Another method is the net asset valuation that calculates the fair market value by dividing the net worth of the company (as per its balance sheet) by the number of its shares.

Tax experts have also pointed out that it is not clear whether merchant bankers will have to use all methods for valuation and take their average or they can use the lowest valuation of the share. It would be useful to know what criterion should be used, they added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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