TDS on ESOP reimbursement of expenses/ cross charge by Indian Subsidiary to Foreign Parent and vice-Versa

ESOPs have become a potent tool in global talent retention strategies. This extends to international enterprises operating in India, and Indian companies can offer ESOPs to personnel from foreign parent companies or subsidiaries. However, this raises a crucial concern: the complex allocation of ESOP expenses across different entities worldwide poses a significant challenge in accounting and corporate taxation in the global and local ESOP landscape.