Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
The circular addresses the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company. It clarifies that the transfer of securities/shares by the foreign holding company directly to employees of the Indian subsidiary company, and subsequent reimbursement of costs by the subsidiary company to the holding company, does not constitute an import of financial services liable to GST. The circular emphasizes that such transactions are not considered supplies of goods or services under GST law. However, if the foreign holding company charges additional fees, GST would be leviable on such amounts as consideration for facilitating the transaction. The circular highlights that no supply of services occurs when securities/shares are transferred directly, but GST applies if additional fees are charged.
The circular addresses the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company. It clarifies that the transfer of securities/shares by the foreign holding company directly to employees of the Indian subsidiary company, and subsequent reimbursement of costs by the subsidiary company to the holding company, does not constitute an import of financial services liable to GST. The circular emphasizes that such transactions are not considered supplies of goods or services under GST law. However, if the foreign holding company charges additional fees, GST would be leviable on such amounts as consideration for facilitating the transaction. The circular highlights that no supply of services occurs when securities/shares are transferred directly, but GST applies if additional fees are charged.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4918 
