Thursday, September 13, 2007

The valuation rule will need to be exhaustive and specific

Stock options: The costly ambiguity
Chennai, Sept. 12 In the ambiguity surrounding fringe benefit tax (FBT) on employee stock option plans (ESOPs), the biggest affected party is possibly the Government, according to Mr Kaushik Mukerjee, Executive Director of PricewaterhouseCoopers.

“The first instalment of FBT was due on June 15, which was postponed by the Government to September 15. If the notification had been issued in time, 45 per cent of the tax would have been collected by September 15. In the absence of rules, the Government cannot collect FBT,” he said in an email interaction with Business Line.

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