Valuation of corporate guarantee services clarified: value based on guaranteed amount per annum or actual consideration, with charge and invoicing rules. Supply of corporate guarantee between related persons is taxable and, from the retrospective effective date, valuation for guarantees issued or renewed on or after that date is the higher of actual consideration and a notional annual charge based on the amount guaranteed (apportioned for shorter periods and multiplied for multi year tenures); domestic intra group guarantees are forward charged with invoicing by the guarantor, foreign guarantors attract reverse charge, co guarantors share valuation proportionately, and invoice value is deemed where full input tax credit is available.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Valuation of corporate guarantee services clarified: value based on guaranteed amount per annum or actual consideration, with charge and invoicing rules.
Supply of corporate guarantee between related persons is taxable and, from the retrospective effective date, valuation for guarantees issued or renewed on or after that date is the higher of actual consideration and a notional annual charge based on the amount guaranteed (apportioned for shorter periods and multiplied for multi year tenures); domestic intra group guarantees are forward charged with invoicing by the guarantor, foreign guarantors attract reverse charge, co guarantors share valuation proportionately, and invoice value is deemed where full input tax credit is available.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
