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TMI BlogActivities or Transaction Excluded from Supply - Para 1 of Schedule III [Read with Section 7(2)]X X X X Extracts X X X X X X X X Extracts X X X X ..... e, these term may be defined as under: - (1) Employer a person who has engaged or hired the services of another. he is entitled to rights and bound to perform duties. (2) Employee is a person who is hired for a wages, salary, fee, or payment to perform work for an employer. As per Education Guide issued by CBIC 2012 ( Services Tax Regime ) Only services that are provided by an employee to the employer in the course of employment outside the ambit of services. Services provided on contract basis i.e. principal to principal basis are not services provided in the course of employment. Amount paid by the employer to employee for premature termination of a contract of employment are treatable as amount in relation to services provided by the emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y perquisites provided by the employer to its employees in terms of contractual agreement entered into between the employer and the employee are in lieu of the services provided by employee to the employer in relation to his employment. It follows therefrom that perquisites provided by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST when the same are provided in terms of the contract between the employer and employee. Clarification in respect of taxability of Employee Stock Option (ESOP)/Employee Stock Purchase Plan (ESPP)/ Restricted Stock Unit (RSU) provided by a company to its employees under GST. Issue - whether the transfer of shares/ securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act . Important Notifications Clarification 1) Issue :- Whether the activity of holding shares by a holding company of the subsidiary company will be treated as a supply of service or not and whether the same will attract GST or not. [ Circular No. 196/08/2023-GST dated 17th July, 2023 ] Clarification Definition of Goods or Services under CGST exclude the securities Securities does not considered as a goods or service under the definition of Goods (clause 52 ) or Services (Clause 102) of Section 2 of CGST, Act 2017 Further, securities include shares as per definition of securities under clause (h) of section 2 of Securities Contracts (Regulation) Act, 1956 . Analysis :- This implies that the securities held by the holding company in the su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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