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CBIC on Thursday clarified that if an MNC subsidiary in India as service recipient is eligible to claim full input tax credit (ITC) under the GST, the value declared by the overseas affiliate in the invoice will be treated as the taxable value.
ESOPs given by foreign companies to employees of its Indian subsidiary at prevailing market value will not attract GST, the CBIC has said.
CBIC issued a Circular No. 213/7/2024-GST dated 26.06.2024 providing Clarification on the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company
In what could be a relief for companies, multinationals, and start-ups issuing ESOPs to employees, the upcoming GST Council is likely to issue clarification on the taxability of reimbursement of securities/shares as ESOP/ESPP/RSU provided by a company to its employees.