Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
India’s Revenue Authority Asks Crypto Exchanges For Details Of Coins Traded On Their Platforms – Taxes Bitcoin News
India’s tax authorities have reportedly asked major cryptocurrency exchanges in the country to provide information about the coins traded on their platforms. The tax authority also assesses the tax liability of crypto transactions to determine whether the goods and services tax (GST) can be applied to them.
Indian crypto exchanges to provide details of coins traded on their platforms to the tax authorities
India’s Central Board of Indirect Taxes and Customs (CBIC) has asked major Indian crypto exchanges to provide details of the cryptocurrencies traded on their platforms, Business Standard reported on Friday. A senior official was quoted as saying:
We had meetings with crypto exchanges on far-reaching issues related to the asset class. We have sought a detailed report on various crypto products being traded and their respective transaction fees and how they are calculated.
In addition, the CBIC is reportedly assessing the taxability of crypto transactions to determine whether the goods and services tax (GST) can be applied to them. The tax authority is also working on the definition and classification of crypto-assets.
The official explained that with a better understanding of these crypto products and how they are executed, it would be easy to find out how GST may apply to them and their applicable tax rate. The IRS gave crypto exchanges until the end of this month to provide the information.
Currently, a GST of 18% is levied on services provided by crypto exchanges. The Indian government began taxing cryptocurrency earnings at 30% in April, and a 1% withholding tax (TDS) on crypto transactions took effect in July. Last month, the Ministry of Finance revealed that it is working on how GST can be applied to crypto.
The Indian government is currently working on the country’s crypto policy. Finance Minister Nirmala Sitharaman said earlier this month that the government plans to discuss crypto regulation during its G20 presidency to establish a technology-driven regulatory framework. A government official said last month that India plans to finalize its position on the legality of crypto by the first quarter of next year to comply with the standards set by the Financial Action Task Force (FATF).
What do you think about how India plans to tax cryptocurrency transactions? Let us know in the comments section below.
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