https://www.taxtmi.com/circulars?id=67242 A director's personal guarantee for a company's bank credit is treated as a supply of service between related persons even without consideration, but where RBI norms prohibit any commission or other payment, the open market value and taxable value are treated as zero. If any remuneration or consideration is nevertheless paid, the taxable value is the amount so paid. Corporate guarantees between related companies, including holding company guarantees for subsidiaries, are also taxable supplies without consideration and are valued under rule 28, including the special sub-rule for corporate guarantees, which does not apply to personal guarantees. en-us Wed, 29 Nov 2023 00:00:00 +0530 Tue, 14 Apr 2026 15:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=67242 A director's personal guarantee for a company's bank credit is treated as a supply of service between related persons even without consideration, but where RBI norms prohibit any commission or other payment, the open market value and taxable value are treated as zero. If any remuneration or consideration is nevertheless paid, the taxable value is the amount so paid. Corporate guarantees between related companies, including holding company guarantees for subsidiaries, are also taxable supplies without consideration and are valued under rule 28, including the special sub-rule for corporate guarantees, which does not apply to personal guarantees. Circulars GST - States Wed, 29 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/circulars?id=67242