Clarification on taxability of shares held in a subsidiary company by the holding company

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..... r No: 2148254 File No: REV03-12039(31)/60/2023-COMM, Date. 20/07/2023 Sub : Clarification on taxability of shares held in a subsidiary company by the holding company -Reg. Ref : Circular No.196/08/2023-GST, dated 17.07.2023 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs. Representations have been received fro .....

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..... company 1. 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. Securities are considered neither goods nor services in terms of definition of goods under clause (52) of section 2 of APGST Act and the definition of ser .....

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..... holding companies, i.e. holding securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest. , unless there is a supply of services by the holding company to the subsidiary company in accordance with section 7 of APGST Act. Therefore, the activity of holding of shares of subsidiary company by the holding company per se cannot be t .....

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