ST on advance given by wholly subsidiary company to Holding subsidiary

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ST on advance given by wholly subsidiary company to Holding subsidiary
Query (Issue) Started By: - pawan pant Dated:- 16-3-2016 Last Reply Date:- 17-3-2016 Service Tax
Got 5 Replies
Service Tax
Hello Sir, I would like to know that whether Service tax shall be liable if some advance has been given by Wholly owned subsidiary company to Holding company ? the nature of advance would be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... incurred the same on business operative expenses. Reply By KASTURI SETHI: The Reply: Only money transaction is not liable to Service Tax. Such transaction is out of definition of 'Service' in terms of Section 65 B(44)(a)(iii) of the Finance Act,1994. Reply By Ganeshan Kalyani: The Reply: I agree with Sri Kasturi Sir, only advance given will not be termed as service being provided. No s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ervice tax on advance given. Thanks. Reply By surya narayana: The Reply: Dear friend, I do not think the said amount is treated as advance but at the most can be considered as a loan because generally, the advance is paid/given with regard to a purchase or in terms any contract etc., Though prima facie it appears a transaction in money, the taxability would depend on the context in which this .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... transaction of money took place. Regards Suryanarayana Reply By Ganeshan Kalyani: The Reply: Sir I agree this could be loan given in place of advance. Advance would be against any work which is to be performed in near future. In that case service tax may become applicable. thus the querist should further elaborate his query so that experts can further write their replies. Thanks. Reply By K .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ASTURI SETHI: The Reply: Agreed with Sh.Surya Narayan, Sir and Sh.Ganeshan Kalyani, Sir too. The nature of advance is to be utilised for 'Business Operative Expenses" by the Holding Company. So this aspect can go to any direction---Taxable or non-taxable. In a nutshell, all the replies are valuable for the querist.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X