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TMI BlogClarification on taxability of shares held in a subsidiary company by the holding company.X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of State Tax/ Deputy Commissioner of State Tax/ Assistant Commissioner of State Tax (All) Superintendent of State Tax (All)/ Inspector of State Tax (All) Subject: Clarification on taxability of shares held in a subsidiary company by the holding company. Madam / Sir, The Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit vide Circular No. 196/08/2023 GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Circular No. 196/08/2023-GST F. No. CBIC-20001/5/2023-GST Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs GST Policy Wing **** New Delhi, Dated the 17th July, 2023 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Central Tax (All) The Principal Directors General/ Directors General (All) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al held in subsidiary company by the parent 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 CGST Act and the definition of services under cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding 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 CGST 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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