TMI BlogClarification on taxability of shares held in a subsidiary company by the holding company.X X X X Extracts X X X X X X X X Extracts X X X X ..... hi, Dated the 17th July, 2023 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Central Tax (All) The Principal Directors General/ Directors General (All) Madam/Sir, Subject: Clarification on taxability of shares held in a subsidiary company by the holding company. Representations have been received from the trade and fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 attract GST or not. Securities are considered neither goods nor services in terms of definition of goods under clause (52) of section 2 of CGST Act and the definition of services under clause (102) of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 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 subsidiary company in accordance with section 7 of CGST Act. Therefore, the activity of holding of shares of subsidiary company by the holding company per se cannot be treated as a supply of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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