Our Company has issued shares at less than FMV to employees of subsidiary company.
For perquisite tax employer- employee relationship is a must.
The same relationship does not exist here.
Can someone guide me as to whether prequisite tax would be charged or not.
And if yes then through which company - Holding or Subsidiary..
Please pour in your comments and suggestions
Regards,
A subsidiary company employee is indirectly an employee of the holding company. Holding company has every right to change the composition of Board of Directors of the Subsidiary company. So shares issued by the holding company is a tax perquisite for the employee of the subsidiary company.
Hi,
Are there any caselaws or any precedence available for such a kind of treatment
and if tds is to be deducted - in which company
Regards
CAclubindia
