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

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ngaluru-560009, Dated: 21-07-2023 COMMISSIONER OF COMMERCIAL 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 tre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ces in terms of definition of goods under clause (52) of section 2 of KGST Act 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 neith....