https://www.taxtmi.com/caselaws?id=797057 Corporate guarantees issued for subsidiaries or associates without charging commission or interest do not attract service tax under Banking and Other Financial Services. Taxability requires a service provider, recipient, taxable service and consideration; where no consideration flows to the guarantor, the essential element of a taxable service is absent. Corporate guarantees were not specifically covered by that service category, and valuation provisions cannot create or deem consideration where none exists. Non-monetary benefits relevant to valuation cannot establish consideration. Consequently, service-tax demands, interest and penalties relating to such gratuitous corporate guarantees are unsustainable. en-us Thu, 13 Aug 2026 00:00:00 +0530 Mon, 17 Aug 2026 08:38:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797057 Corporate guarantees issued for subsidiaries or associates without charging commission or interest do not attract service tax under Banking and Other Financial Services. Taxability requires a service provider, recipient, taxable service and consideration; where no consideration flows to the guarantor, the essential element of a taxable service is absent. Corporate guarantees were not specifically covered by that service category, and valuation provisions cannot create or deem consideration where none exists. Non-monetary benefits relevant to valuation cannot establish consideration. Consequently, service-tax demands, interest and penalties relating to such gratuitous corporate guarantees are unsustainable. Case-Laws Service Tax Thu, 13 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797057