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New Delhi June 14 The Finance Ministry on Thursday said that the first instalment of the advance tax relating to fringe benefit tax (FBT) on employee stock option programmes or sweat equity could be paid by September 15, against the earlier specified due date of June 15.

With the method for determination of fair market value yet to be notified, the Finance Ministry has conceded that it would not be possible for an employer to determine the value of the first instalment of advance tax in regard to ESOPs or sweat equity issued to its employees.

Budget 2007-08 had brought ESOPs and sweat equity issued to employees under the FBT net. The FBT liability on ESOPs has to be cleared by the employer as advance tax in four instalments.

The value of the fringe benefit is determined as the fair market value of the specified security or sweat equity share on the date on which the option vests with the employee as reduced by the amount actually paid by or recovered from the employee in respect of such security or shares.

The fair market value has to be determined in accordance with the method prescribed by the central board of direct taxes.

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