https://www.taxtmi.com/caselaws?id=797055 Service tax on corporate guarantees requires provision of a taxable service for consideration. Where an enterprise furnishes corporate guarantees to associated enterprises without charging commission, fees, interest, or any other consideration, no taxable value arises. A notional value derived from market rates applicable to bank guarantees cannot be treated as consideration for service tax purposes. Authorities concerning corporate guarantees supported by actual commission or other consideration do not apply where the guarantees are gratuitous. Corporate guarantees furnished without consideration are therefore not liable to service tax, and the demand was dropped. 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=797055 Service tax on corporate guarantees requires provision of a taxable service for consideration. Where an enterprise furnishes corporate guarantees to associated enterprises without charging commission, fees, interest, or any other consideration, no taxable value arises. A notional value derived from market rates applicable to bank guarantees cannot be treated as consideration for service tax purposes. Authorities concerning corporate guarantees supported by actual commission or other consideration do not apply where the guarantees are gratuitous. Corporate guarantees furnished without consideration are therefore not liable to service tax, and the demand was dropped. Case-Laws Service Tax Thu, 13 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797055