Circular 204/16/2023 - Central Tax

Date: October 27, 2023

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Subject

Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST

Content

Representations have been received from the trade and field formations seeking clarification on certain issues with respect to taxability of activity of providing personal bank guarantee by Directors to banks for securing credit facilities for the company. Similarly, clarifications are being sought with respect to taxability and valuation of the activity of providing corporate guarantee by a relat…

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