TaxTMI 
TaxTMI 
Clarification on taxability of shares held in a subsidiary company by the holding company
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.... SECRETARY/ COMMISSIONER OF STATE TAX Circular No.12/2023 (PP6/GST/82/2023) Dated 14.08.2023 Sub: Clarification on taxability of shares held in a subsidiary company by the holding company. Ref: Circular No. 196/08/2023-GST, dated 17.07.2023, issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs. ***** In the refere....
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....powers conferred by section 168 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as "TNGST 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 suppl....
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....be said that a service is being provided by the holding 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 th....