The parent company’s corporate guarantee to its subsidiary for a bank loan will attract 18 per cent GST, recommended the GST Council on Saturday. However, there will be no GST if a director provides a personal guarantee for a loan from a bank or any financial institution to his/her own company.”
“When the corporate guarantee is given by a director to a company then then the value of service will be deemed to be zero, hence no tax,” Revenue Secretary Sanjay Malhotra said at a press conference to announce recommendations of 52nd meeting of GST Council under the Chairpersonship of Finance Minister Nirmala Sitharaman in the national capital.
Source a2ztaxcorp
Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
Latest Posts in "India"
- Supreme Court Rules: “Parts” Must Functionally Integrate into Machinery, Rejecting End-Use Claims
- Centre to Consider Panel’s GST Recommendations on Air Purifiers, Tells Delhi High Court
- Sunglasses Not Classified as Spectacles, Taxable at Higher 12.5% VAT: Punjab & Haryana HC
- BMW Urges No GST Hike on EVs as Electric Car Sales Surge Over 200% in 2025
- Supreme Court: Hostel Rooms for Students Qualify as Residential Dwellings, GST Exempt
