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 ..... Subject: Clarification on taxability of shares held in a subsidiary company by the holding company. No. CT/GST-15/2017/843. Representations have been received from the trade and field formations seeking clarification on certain issues whether the holding of shares in a subsidiary company by the holding company will be treated as 'supply of service' under GST and will be taxed acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Assam GST Act and the definition of services under clause (102) of the said section. Further, securities include 'shares' as per definition of securities under clause (h) of section 2 of Securities Contracts (Regulation) Act, 1956. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly of services by the holding company to the subsidiary company in accordance with section 7 of Assam GST Act. Therefore, the activity of holding of shares of subsidiary company by the holding company per se cannot be treated as a supply of services by a holding company to the said subsidiary company and cannot be taxed under GST. 3. This Circular is clarificatory in nature ..... X X X X Extracts X X X X X X X X Extracts X X X X
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