Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

ESOP ---- FBT -- HIGHLY IMP.

Adv. S Sharma (Lawyer) (574 Points)

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

Reply
Follow
Share

7 Replies

Adv. S Sharma (Lawyer) (574 Points)
Replied 01 February 2008

any ans. guys

Upgrade to CAclubindia Pro. Subscribe Now!

jagadish (accountant) (64 Points)
Replied 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)
Replied 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)
Replied 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)
Replied 02 February 2008

thx guys

Upgrade to CAclubindia Pro. Subscribe Now!

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 07 February 2008

yes.Covere in FBT

sandhya (Article) (96 Points)
Replied 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.