CBIC Issued a Clarification on GST Implication on ESOPs Issued by Domestic Companies through a Foreign Holding Company
VJM Global
SEPTEMBER 7, 2024
Since last year, during the GST audit, most GST Authorities have questioned the taxability of ESOPs issued by the Indian Subsidiary company to the employees of its foreign holding company. GST Authorities were content that such a transaction is considered an Import of service, and therefore, domestic Indian companies are liable to pay GST on the same under RCM.
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