CBDT is yet to prescribe the method.
It seems CBDT is currently in the process of notifying the method for determination of the fair market value. In the meantime, the first instalment of advance tax in respect of fringe benefit tax falls due on 15th of June. In the absence of a method for determination of the fair market value, it will not be possible for an employer to determine the value of the first instalment of advance tax related to fringe benefit tax in respect of allotment or transfer of specified security or sweat equity shares to its employees.
So the kind Board (CBDT) has decided that the first installment of Fringe Benefit Tax, which is payable by today in respect of transfer or allotment of specified security or sweat equity shares to its employees, may now be paid by 15th of September, 2007 (the date of second instalment).
But what prevented the CBDT from notifying the procedure? What happens to the Tax that would have been paid by today if the CBDT had prescribed the procedure? Will this become a future Audit para for the CAG to tell the parliament that we lost so much of money because CBDT could not frame the method? Why can’t the method of collection be framed at the time of imposition of the tax? These are questions and will remain questions!