ESOP + Managerial Remuneration

This query is : Open

CA Mitesh Patel (Querist)
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02 July 2009 Dear All,

Would like to know in case of ESOP to Key managerial person, whether difference between allotment price and valuation price of shares incase of ESOP will be consider as managerial remuneration.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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03 July 2009 The Difference between ESOP price and valuation price is the amount on which FBT is payable by the company. This difference will not be treated as managerial remuneration.

CA Mitesh Patel

CA Mitesh Patel (Querist)
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03 July 2009 Thank You CA B.Srinivasulu,

Could share with some material if you have on hand to support the conculsion.

That the difference will not be treated as managerial remuneration.

retgards,
Mitesh

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