Clarification on taxability of shares held in a subsidiary company by the holding company

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....CIAL TAXES CIRCULAR No. GST-09/2023 Subject : Clarification on taxability of shares held in a subsidiary company by the holding company Representations have been received from the trade and field formations seeking clarification on certain issues whether the holding of shares in a subsidiary company by the holding company will be treated as "supply of service" under GST and will be taxed accordi....

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....and the definition of services under clause (102) of the said section. Further, securities include 'shares' as per definition of securities under clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956. This implies that the securities held by the holding company in the subsidiary company are neither goods nor services. Further, purchase or sale of shares or securities, in itse....