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Remuneration or consideration received, directly/indirectly by a serving or separated director, for providing corporate guarantee will be treated as taxable value for GST, the Central Board of Indirect Taxes & Customs (CBIC) has said. This is part of a clarificatory…
The Central Board of Indirect Taxes and Customs (CBIC) has said that Goods and Services Tax (GST) will apply to corporate guarantees between related entities such as parent firms and subsidiaries from 26.10.2023. As per CBIC order, 18% GST will…
CBIC issued Notification no. 52/2023 – Central Tax dated 26.10.2023 to further amend the Central Goods and Services Tax Rules, 2017. Sub-rule (2) is inserted in rule 28 as “Notwithstanding anything contained in sub-rule (1), the value of supply of…
Holding companies that have extended corporate guarantees to their subsidiaries in India are embroiled in litigation relating to demands raised under the Goods and Services Tax Act. Government officials estimate the aggregate demand over the past three months to be…
The Directorate General of Goods and Services Tax Intelligence (DGGI) has sent tax demand notices to several local corporate houses over corporate guarantees given on behalf of their subsidiaries, and to multinationals where they have given such guarantees for their…
The CESTAT, New Delhi in Sowar Pvt. Ltd. v. Commissioner of Service Tax [Final Order No. 50607 Of 2023 dated March 29, 2023] held that assessee has not received any consideration for providing corporate guarantee and hence no service tax…