Community Insights
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Unveiling the Impact of GST on Corporate Guarantees A Corporate Guarantee is a guarantee in which any corporation agrees to be responsible for the financial obligations of the principal debtor to the creditor. These transactions usually include inter-group Corporate guarantees, which are given to facilitate smoother financial functioning for the related persons. For example, A holding or parent company issues a corporate guarantee to Banks or Financial Institutions as collateral security ..... Read More |
23.05.2024 |
CIRCULARS
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2. |
Circular No. 225/19/2024-GST dt.11.07.2024 | Clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons. |
1. |
Circular No. 204/16/2023-GST dt. 27.10.2023 | Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST |
CASE LAW
Particulars | Oneliner |
2024(05)LCX0016 Punjab & Haryana High Court Acme Cleantech Solutions Private Limited |
Effect and operation of the Circular No. 204/16/2023-GST dated 27.10.2023 relating to taxability of corporate guarantee by a person on behalf of another related person, or by the holding company for sanction of credit facilities to its subsidiary company, to the bank/ financial institutions even when made without any consideration, shall remain stayed |
2024(02)LCX0490 Delhi High Court Sterlite Power Transmission Limited |
The court grants time to department for filing a counter affidavit regarding taxation of Corporate Guarantees |