Circular 196/08/2023 - Central Tax

Date: July 17, 2023

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Subject

Clarification on taxability of share capital held in subsidiary company by the parent company

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…

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