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TMI BlogService tax on corporate Guarantee to Group CompanyX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Expert, Need your view on below mentioned query : Whether Tax will be applicable on Corporate Guarantee give by Holding Company to it Subsidiary Company under the provision of Service Tax as well as GST. Please note that no fees/amount has been charged by the Holding Company for giving Guarantee to its subsidiary Company. Thanks , Pankaj Singh - Reply By DR.MARIAPPAN GOVINDARAJAN - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = In my view NO - Reply By Prakash Gupta - The Reply = Sir,thanks for your reply. Pl support your view with Act. - Reply By Himansu Sekhar - The Reply = Under GST Circular No. 34/8/2018-GST dated 01.03.18 (2) The service provided by Central Government/State Government to any business entity including PSUs by way of guaranteeing the loans taken by them from financial insti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tutions against consideration in any form including Guarantee Commission is taxable . Similar is the situation for the companies. giving guarantee. It is taxable. Regarding consideration ....... aspect much deliberation is required. Regarding S.tax, in my view, it is taxable under Banking financial services, taxable services after 01.07.12 My personal opinion. - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Himansu Sekhar - The Reply = Further analysis is required on this subject - Reply By KASTURI SETHI - The Reply = On this issue SCN was issued against M/s.Virgo Boards on 12.10.15 by the Commissioner, Central Excise Audit-1 New Delhi . Decision is not known. - Reply By Ganeshan Kalyani - The Reply = The definition of service states as any activity carried out by a person for another for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a consideration. In the query posted the element of consideration is missing hence in my view service tax was not payable. Under GST, it is better to charge GST if the receiving entity is able to get input tax credit. - Reply By Kothapally RajiReddy - The Reply = Sir, It seems GST is payable on corporate guarantee even if no consideration is received in terms of Schedule-I to CGST Act as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e subsidiary company is related to holding company. - Service tax on corporate Guarantee to Group Company - Query Started By: - Prakash Gupta Dated:- 17-8-2018 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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