Circular196/08/2023Central Tax
Clarification on taxability of share capital held in subsidiary company by the parent company
- Date:
- July 17, 2023
Content
Representations have been received from the trade and field formations seeking clarification on certain issues whether the holding of shares in a subsidiary company by the holding company will be treated as ‘supply of service’ under GST and will be taxed accordingly or whether such transaction is not a supply. 2. In order to clarify the issue and to ensure uniformity in the implementat…