In this intricate world of GST, relationship between Holding and Subsidiary Companies presents distinctive set of challenges. Unlike regular transactions, interplay of GST between these entities can often lead to a labyrinth of complexities which, if exploited, can result in severe repercussions such as misreporting, preferential treatment, distorted valuations, or even detrimental effects on tax collection for the exchequer.
In this Article, Authors have attempted to adumbrate the controversial GST demand on shares held by a Holding Company in its Subsidiary Company and recent clarification by GST Council apropos this issue.
Source NityaTax
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