ST on advance given by wholly subsidiary company to Holding subsidiary

[Asked by Guest]

Hello Sir,

I would like to know that whether Service tax shall be liable if some advance has been given by Wholly owned subsidiary company to Holding company ?

the nature of advance would be incurred the same on business operative expenses.

AI Summary

Service tax on advances: taxability depends on whether the payment is a mere money transfer or consideration for services.
Taxability of funds from a wholly owned subsidiary to its holding company depends on whether the transfer is a bare money transaction or consideration for work. Pure monetary transfers not serving as consideration fall outside the definition of service and are generally not taxable, whereas advances tied to future contractual performance may attract service tax; the factual context and legal characterisation determine the outcome.