A Company allotted Restricted Stock Units (Under ESOP) to its employees, with a lock in period of 5 years. Now that FBT is abolished and these stock units are to be treated as remuneration and is to be taxed in the hands of the employees, the question arises at what point of time does the taxability of these units arise,
a) On the vesting of the options with the Employees or
b) On the ultimate delivery of the shares to the employees after lock in period.

There was no benefit and the value of the benefit was unascertainable at the time the options were vested/exercised.

In CIT vs. Infosys Technologies Ltd. (2007) it was decided that since the benefit of the options which arose on the date of vesting/exercising was only a notional benefit & during the lock in period the possession of the shares remained with the employer & it was not possible for the employee to know the future value of the shares allotted to him on the day he exercises option, this could not be treated as a benefit & TDS need not be deducted.

But this is a case law held before the FBT regime came into force.
I would like to know if I can keep this case law as the basis & postpone my tax liability or is there another dimension to this. Kindly share your valuable opinion.

DEAR ALL

IF TDS IS DEDUCT ON INTEREST PAID TO COMPANY WHICH BOOK OF ENTRIES IS PASSED AND IN TEREST IS INDIRECT INCOME AND TDS IS WHICH TYPE OF EXP I.E DIRECT OR CURRENT ASSET

PLEASE TELL

THANKS IN ADVANCE

Dear All,

Pls let me know with reasoning whether Tds is deductible in case we reimburse any Exp.

Eg: Freight Exp.

Even in case of Reimbursement?

But Sir, here were does the contract for frieght exist between us and our vendor? Just the party has raised debit note on us for the same.Pls can you explain me from where does the provision of TDS becomes applicable in such case?

Pls let me make the case more clear.
The vendor has supplied us some material and freight exp in relation to the same is reimbursed by us to our vendor who in turn will pay the same to transport Co.

But here our vendor is sending us material, and we are paying them freight which they will pass on to transport co.

According to Circular no. 7 dt. 22/10/2009, CBDT had withdrawn Circular No. 23 dt. 23/07/1969. Is withdrawl of Circular No. 23 applicable from immediate effect? Kindly let me know that if any indian company pays commission on exports to a foreign agent, does the liability of TDS arises on the Indian Company as per the circular as the liability of same was not there earlier as per Section 9 of the i.T.Act.

Dear Sirs,

What is the impact of this circular?

Circular No. 7/2009 [F. No. 500/135/2007-FTD-I], dated 22-10-2009

The payment of commission on export orders to Non Residents abroad are exempt vide Circular no.786 dt.7.2.2000. Now it is withdrawn by IT dept.

Please clarify

Thanks in advance

Varathan

Dear Friends..
Kindly advice for the query stated below asap…

A resident company has given advertisement contract to nonresident company in US. The nonresident company shall put up the advertisement on its site. Is the company while making payment supposed to deduct TDS? If yes at what rate and under what Article of DTAA between US & India shall be applicable.
The above shall not fall u/s 194 C as its for payments to resident…
If reference of sec 9 is taken then dilemma is that it shall fall under 9(1)(vi) or 9(1)(vii)(b)…

Reply awaited...

My client holding NRI Status(UK citizen). He has having a PAN. He sale one plot situated in india to Indian Resident. Sale proceed received in Indian Rupees and deposited in NRO Account. He wants to repatriate the sale proceeds to UK.

My question is :

Whether fund tr to NRO A/c to NRE A/c is permissible?

Whether 15CA form to be filled up.
If yes, then the information of remitter and beneficier of remitter are the same person?

Whether he required to deposit the tax in his PAN right now and assessed to Income tax Dept.? Then the question of 15CA form filling is arise or not?

Whether he can invest the some proceeds in Mutual Funds or indian equities ?

A Trust has filed its returns only till the year ended 31.03.2002 (AY 2002-2003). Now it wants to file for the subsequent years up to 31.03.2009 (AY 2009-2010). The Trust has not much transactions and the receipts for any year never exceeded Rs 50,000. Can the IT Returns be filed for 7 years now? What are the Forms to be used for various Assessment Years (like Form 3 or 3A or ITR 7 for the last two years)? Is any approval required from CIT / DCIT for filing 7 years together? What is the solution available?

Please guide me.

My mail is raghuraman_279_in@yahoo.com.

Thank You.

Dear All,
Is the consideration received from sale of TDR liable to capital gains?
If yes, what is the cost of acquisition?
a)Nil
b)Purchase cost of land
c)?

What if the seller (of TDR) continues to be the owner of the land?
Thanx & Regards,
Niki

Suppose X is a director, the company by virtue of the terms of agreement pays directly the mediclaim premium to GIC. Is it taxable in the hands of employee and can he claim section 80D deduction or it is a business expenditure of the company?

Suppose, y is an employee who pays the mediclaim premium and submit the receipt for reimbursement to the company. Will it be taxable in his hand? Can he claim section 80D benefit?