Indirect Tax Alert
Indirect Tax Alert
Investment Management activities undertaken by a Venture Capital Fund is not leviable to Service tax
In July 2021, the CESTAT had upheld the demand of Service tax liability on Investment Management Activities undertaken by a Venture Capital Fund. The order was challenged before the Karnataka High Court. The Karnataka High Court has set aside the aforesaid order holding that such activities are not leviable to Service tax.
We, at BDO India, have summarised the ruling, and hope you would find it timely and useful.