The Punjab and Haryana High Court has suspended a circular from the CBIC concerning the tax implications of corporate guarantees between related entities. The circular suggested that providing such guarantees without payment should be considered a service. This decision follows a case represented by Senior Advocate Sujit Ghosh and Advocate Rishabh Kapoor. The debate focuses on whether tax on corporate guarantees is valid at 1% and how it applies when guarantees extend beyond one year.
Punjab and Haryana High Court Halts CBIC Circular on Tax Treatment of Corporate Guarantees
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