Employee Stock Option Plan (ESOP) is an option to purchase stock/equity of the employer company at a predetermined price (mostly below its prevalent market value at time of grant) given to the employee by the employer company. The employee who agrees to ESOP scheme can exercise the actual purchase of Employer Company’s stock/equity on fulfillment of certain conditions like completion of tenure of service defined in number of years or a revenue target of the company. On fulfillment of the
Month: December 2020
New Labour Code: Potential Accounting Implications
Government of India is actively working on reforms of various old laws out of which one is new Labour Code which was cleared by both the houses of parliament in July 2019 and received Presidents assent l on 8th August 2019 and called “The code of Wages 2019” However, many provisions of the Code of Wages 2019 are still not implemented and are yet to be made effective.` The major challenge in bringing about any labour reforms is to facilitate
ESOP Discount is business expenditure for earning profits
On 11-11-20, the hon’ble High Court of Karnataka has held that the deduction of discount on ESOP over vesting period per books of account is an admissible tax allowance in computation of business income of the employer company. The legal principle emphasized by the High Court is that the discount on issue of ESOPs is not a contingent liability but an ascertained liability. The decision was pronounced in the case of Commissioner of Income Tax, LTU v. Biocon Ltd. The
Mixed bag on timelines
Eway Bill GST Registration CBEC-20/13/06/2020-GST Instruction No. 4/3/2020-GST, directs the Standard Operating Procedures (SOP) for verification of taxpayers granted deemed GST registration. During the period from 21st August’2020 to 16th November’2020, deemed registration were granted where Aadhaar authentication has either not been opted or authentication has failed. A mandatory physical verification shall be done by proper officer for the deemed registration granted. Recent Judgements Supreme Court in its judgment dated 03.12.2020 Petitioner contended that the definition of goods u/s 2(52)
Recent Amendments by MCA, RBI and others
In this edition we have tried to bring to your notice the latest amendment that followed in the month of November, 2020 issued by MCA, RBI, DIPP and others. Amendments issued by MCA Extension of LLP Settlement Scheme, 2020 The MCA extends due date of defaulting LLP to file belated documents under LLP Settlement Scheme, 2020. To read more http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.37_09112020.pdf Amendments issued by RBI Discontinuation of Returns/Reports under Foreign Exchange Management Act, 1999 The Reserve Bank of India has notified
Key Considerations in Risk Based Internal Audit
Even when risk identification is primarily a management responsibility, internal auditors play a pivotal role in risk management by evaluating the process controls highlighting critical risks in achievement of business objectives as well as providing assurance regarding adequacy of controls in respect of existing and emerging risks. A regular and effective risk-based audit program is essential to achieve these objectives. It helps auditors in identification of potential risks, fraud and errors based on which the auditor can suggest areas of
S&P Global to snap up IHS Markit in biggest M&A of 2020: November 2020 Financial News
Data giant S&P Global Inc has agreed to buy IHS Markit Ltd in a deal worth $44 billion, creating a heavyweight in the increasingly competitive market in financial information. The mega deal, which includes $4.8 billion of debt. Deals touched a record high in the September quarter, with more than $1 trillion worth of transactions, mostly focused on coronavirus-resilient sectors such as technology and healthcare. S&P Global shareholders will own roughly 67.75% of the combined company on a fully diluted