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ESOP ---- FBT -- HIGHLY IMP.

Others 1555 views 7 replies

Adv. S Sharma

Lawyer

574 Points Posted on 31 January 2008

Hi all,

Indian Company under ESOP give shares to employee who is US citizen.

Querruy : - Is this (give shares to US citizen) liable to FBT ?

Thx nd Regards

Sachin Sharma

Replies (7)

Adv. S Sharma

Lawyer

574 Points Posted on 01 February 2008

any ans. guys

jagadish

accountant

64 Points Posted on 01 February 2008

Hi,

Allotment of securities to employees
directly or indirectly under ESOP falls within the
scope of this provision 115WB (1) (a).. But, as there is no specific provision in section 115WC to value this, such shares, debentures or warrants shall not be liable to fringe benefit tax.

With regards
jagadish

Sanjay Dugar

Chartered Accountant

206 Points Posted on 02 February 2008

As per the latest circulation by CBDT such ESOP will fall under he preview of FBT and company alloting the shares will be liable to pay FBT

Sohil Ganeriwala

Practicing CA

308 Points Posted on 02 February 2008

FBT will be applicable to ESOP given to the employees even though he is not an INDIAN national.

Adv. S Sharma

Lawyer

574 Points Posted on 02 February 2008

thx guys

O.D.SHARMA

DGM-F & A

1734 Points Posted on 07 February 2008

yes.Covere in FBT

sandhya

Article

96 Points Posted on 27 February 2008

As per the latest circulation by CBDT such ESOP will fall under he preview of FBT and company alloting the shares will be liable to pay FBT even the employee of company NRI.