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TMI BlogClarification on taxability of shares held in a subsidiary company by the holding companyX X X X Extracts X X X X X X X X Extracts X X X X ..... -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 from the trade and field formations seekin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 services under clause (102) of the said section. Further, securities include 'shares' as per definition of securities under clause (h) of section 2 of Securities Contracts ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply 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 treated as a supply of services by a holding company to the said subsidiary company and cannot be taxed under GST. 3. It is requested that suitable trade notices may be issued to pub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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