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Last Updated : Oct 10, 2019 12:25 PM IST | Source: Moneycontrol.com

GST on brand names, logos; Companies likely to pay thousands of crores : Report

The government wants such entities to place a valuation on their brand names and logos, and charge a fee from Indian subsidiaries or group companies.

The indirect tax department wants Indian conglomerate, foreign banks to pay 18 percent GST on brand names and logos, according to a report by The Economic Times.

Subsidiaries and related companies of large corporations often use the parent company’s brand name and logo for free.

The government wants such entities to place a valuation on their brand names and logos, and charge a fee from Indian subsidiaries or group companies.

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The companies under the scanner include conglomerates such as the Tata and Mahindra groups, along with banks such as ICICI, Citi and HSBC, the report said.

Moneycontrol could not independently verify the story.

HSBC and Tata group declined to comment when approached by The Economic Times. The other companies have not yet responded to requests for comment.

The tax department sent written inquiry orders to some of the companies and issued preliminary notices to some foreign banks, the report said.

Companies and foreign banks will likely have to pay thousands of crores as tax after the levy is imposed, experts told the publication.

The cost could be lowered if the subsidiary is a manufacturing unit, the experts said.

Under GST law, a transaction between related parties is taxable even if there is no consideration.

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First Published on Oct 10, 2019 12:25 pm
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