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

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.... 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 accordingly or whether such transaction is not a supply. 2. In orde....

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.... 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 itself is neither a supply of goods nor a supply of services. For a....