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

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..... Circular No. 08/2023 - GST (State) To The Additional Commissioner of State Tax/ Deputy Commissioner of State Tax/ Assistant Commissioner of State Tax (All) Superintendent of State Tax (All)/ Inspector of State Tax (All) Subject: Clarification on taxability of shares held in a subsidiary company by the holding company. Madam / Sir, The Government of India, Ministry o....

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....196/08/2023-GST. (Rakhi Biswas, TCS-SSG) Chief Commissioner of State Tax Government of Tripura Circular No. 196/08/2023-GST F. No. CBIC-20001/5/2023-GST Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs GST Policy Wing **** New Delhi, Dated the 17th July, 2023 To, The Principal Chief Com....

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....ntral Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act"), hereby clarifies the issues as under: S.No. Issue Clarification Taxability of share capital held in subsidiary company by the parent company 1. Whether the activity of holding shares by a holding company of the subsidiary company will be treated as a supply of service or not and whether the same will ....

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....company to the subsidiary company, solely on the basis that there is a SAC entry '997171' in the scheme of classification of services mentioning; "the services provided by holding companies, i.e. holding securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest.", unless there is a supply of services by the holding company to the subsid....