Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: VAT Audit :: TDS :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: due date for vat payment :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt
 
 
« News Headlines »
 Income-tax (22nd Amendment) Rules, 2017
 All about Exports under GST
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here

TDS on Esop: SC quashes case against Infosys
January, 10th 2008
The Supreme Court has dismissed an income-tax case against Infosys Technologies regarding failure to deduct TDS on earnings of its staff from an employees stock option scheme offer (Esop).

A bench of Justices SH Kapadia and BS Reddy said, Estimation of TDS under Section 192 (Income-Tax Act) in the absence of clear provisions on valuation of perquisite in this case would not justify the department in treating the respondent (Infosys) as assessee in default.

To implement its ESop programme, the Bangalore-based IT company had created a trust, Technologies Employees Welfare Trust, and allotted 7,50,000 warrants at Re 1 each to the trust.

Each warrant entitled the holder to apply for and be allotted one equity share of the face value of Rs 10 each for a total consideration of Rs 100. The trust was to hold the warrant and transfer the same to employees under the terms and conditions of the Esop scheme.

During the assessment years 1997-98, 1998-99 and 1999-2000, warrants were offered to the eligible employees at Re 1 each by the trust. Under the Esop, every warrant had to be retained for a minimum period of one year. At the end of that period, employees were entitled to obtain shares allotted to them on payment of the balance Rs 99.

The option could be exercised at any time after 12 months but before expiry of 5 years. The allotted shares were subject to a lock in period during which their custody remained with the trust.

The assessing officer for the assessment year 1999-2000 held that the total amount paid by the employees consequent to the exercise of option was Rs 6.64 crore whereas the market value of those shares was Rs 171 crore.

Therefore, the department treated Rs 165 crore as perquisite value on which TDS was charged. It was held that the assessee company was defaulter for not deducting TDS under section 192 of the Income Tax Act. Similar orders were also passed for assessment years of 1997-98 and 1998-99.

On the plea of Infosys, the Income-Tax Appellate Tribunal ruled that the right granted to the employees for participating in the scheme was not a perquisite under Section 17(2) (iii) of the IT Act. It was confirmed by the Karnataka high court. Then, the income-tax department filed an appeal at the apex court.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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