Modi Government 3.0 presented the first full Budget on July 23, 2024. As a first full budget of the new coalition government, reforms were expected on several policy, tax and regulatory front. Keepi...
Recently, Goods and Services Tax (“GST”) authorities have been conducting audits and issuing show cause notices to various companies to demand GST on the activities relating to holding of equity of another company. In transactions relating to holding of equity by a foreign company, demand is being raised by treating the transaction as an import of service, wherein the Indian company is being made liable to discharge GST thereon, on reverse charge basis. INDUSLAW's Shashi Mathews and Abhishek Boob analyse the legality of the demands raised in respect of these activities.
