Shares issued to employees of subsidiary and perquisite tax

Mitul (CA) (75 Points)

30 August 2012  

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,