Service tax on corporate Guarantee to Group Company

[Prakash Gupta]

Dear Expert,

Need your view on below mentioned query :

Whether Tax will be applicable on Corporate Guarantee give by Holding Company to it Subsidiary Company under the provision of Service Tax as well as GST. Please note that no fees/amount has been charged by the Holding Company for giving Guarantee to its subsidiary Company.

Thanks ,

Pankaj Singh

AI Summary

Debate on Tax Applicability for Corporate Guarantee by Holding Company: Service Tax vs. GST Without Fee, Circulars Cited A discussion on a forum addresses whether service tax or GST applies to a corporate guarantee provided by a holding company to its subsidiary without charging a fee. Various participants express differing views. One believes it is not taxable, while another cites a GST circular suggesting it is taxable if a guarantee commission is involved. Another participant argues that service tax applies under banking and financial services post-2012. A participant highlights a lack of consideration, suggesting no service tax is due, but advises charging GST if input tax credit is available. Further analysis and reference to specific cases are suggested.