Valuation of related-party corporate guarantees deemed at a minimum value, altering GST treatment of guarantee services. A deemed valuation rule for related party guarantee services is inserted: where a supplier provides a corporate guarantee to a banking company or financial institution on behalf of a related recipient, the value of the supply shall be deemed to be a minimum percentage of the guaranteed amount or the actual consideration, whichever is higher. The amendment renumbers rule 28 as sub rule (1) and adds this new sub rule; the rules are effective from 26 October 2023.
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Provisions expressly mentioned in the judgment/order text.
Valuation of related-party corporate guarantees deemed at a minimum value, altering GST treatment of guarantee services.
A deemed valuation rule for related party guarantee services is inserted: where a supplier provides a corporate guarantee to a banking company or financial institution on behalf of a related recipient, the value of the supply shall be deemed to be a minimum percentage of the guaranteed amount or the actual consideration, whichever is higher. The amendment renumbers rule 28 as sub rule (1) and adds this new sub rule; the rules are effective from 26 October 2023.
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