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: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: empanelment :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: TDS :: form 3cd
 
 
News Headlines »
  How to file ITR for FY 2016-17 and all the links you need
 All about E-way Bill under GST
 Good and simple tax: on the GST regime
 Seeks to extend the time limit for filing of GSTR-1, GSTR-2 and GSTR-3
 Good news, find Tax Return Preparers soon at a place near you; 5 things to know
 Filing of GST return
 Why cement companies are going in for M&As
 Govt moves to rework direct tax law after PM’s nudge
 New offer available for filing tax returns online, how to avail
 Draft Goods And Services Tax Return Rules, 20--
 How to file tax return as a representative of someone

`Stock options must be taxed at employee level'
April, 03rd 2007
 Industry chamber FICCI has urged the Finance Ministry to amend the budget proposal of imposing Fringe Benefit Tax (FBT) on employee stock options (ESOPs) at the hands of the employer. Instead, ESOPs should be taxed only as perquisites or capital gains at the employee level, for taxation to be just and fair.

The difference between the `market price' (as defined by market regulator SEBI) on the date of grant and the price at which the ESOPs are granted to the employees should serve as the basis for computation of FBT.

In cases where the Indian company does not issue its own shares nor takes the ESOP cost in its books, the employee should continue paying the taxes directly in the form of capital gains at the time of sale of the parent company's shares in relation to all qualified plans, the chamber suggested.

Nowhere in the world is ESOPs taxed as an employer's benefit but is taxed as a capital gain or a perk at the employee level, the chamber argued.

The Confederation of Indian Industry too has described levying of FBT on ESOPs as a step to derail the momentum desired for ramping up employee morale and commitment. In case it is not possible to scrap the proposal to levy tax, the chamber suggested that the legislature should introduce the levy with prospective effect on grants issued on or after April 1, 2007. As the levy of FBT at the point of exercise will result in unenvisaged tax liability in the hands of companies in respect of options, which have already been granted on or before March 31, 2007, the business plans of companies will be substantially vitiated due to the higher FBT incidence, argued the chamber.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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