Do taxes cloud novelty of SARs ?
Stock Appreciation Rights, also known as SARs are a novel way of rewarding the employees of an organisation by granting them the right to benefit from any appreciation in the value of the common stock (shares) of a corporation. However, they pose many interesting questions from the taxation point of view. Are benefits under SARs taxable as income from salary, are they capital gains, do they represent only notional gains?
- Proceedings cannot be continued against transferor entity after merger – ITAT, Chennai
- Aggregation of payment of royalty with other international transactions is permitted – ITAT, Bangalore
- Offshore supplies in case of a turnkey contract - when taxable – AAR
- Interest on refund allowable when delay in raising legal claim and not in proceedings – Gujarat High Court
Notifications & Circulars
- CBDT notifies Form No. 68 under Rule 129 for making application seeking immunity from penalty and prosecution
- Rule 6A for claiming expenditure incurred for obtaining rights to use spectrum for telecommunication services introduced
- CBDT notifies revised ICDS to be applicable from A.Y. 2017-18