While the tax authority has notified crypto exchanges and wealthy traders that they must pay taxes, no clear guidelines have been provided. Indians are confused about how cryptocurrencies are taxed and seven bitcoin exchanges are asking the regulators for clarification..
The Indian National Tax Service has recently inspected top cryptocurrency exchanges as well as sent out notices to wealthy crypto traders informing them to pay taxes. The Authority for Advance Rulings (AAR) is the country’s adjudicatory body on tax matters..
The India Times reported on Friday that the country’s top seven bitcoin exchanges including Zebpay, Unocoin, Coinsecure, and Btcxindia are planning to ask the AAR for clarification. “At least one bitcoin exchange has already filed an application with the Maharashtra AAR for future tax liability,” the publication quoted sources with direct knowledge of the matter, adding that: “The question for many bitcoin players is whether GST is applicable on the total revenue or on the margins they earn,” explained Abhishek A Rastogi, a partner at Khaitan & Co law firm, noting that: Meanwhile, the country’s “indirect tax department is already looking at ways in which bitcoins can be brought under GST,” the publication detailed..
Furthermore, the sales tax department and VAT authorities have also launched their own investigation on the taxability of bitcoin. “For the exchanges, the rate could depend on what the authorities deem bitcoins to be — goods, services or currency,” the news outlet elaborated..
https://news.bitcoin.com/indians-crypto-taxation-exchanges-government-clarify/
The Indian National Tax Service has recently inspected top cryptocurrency exchanges as well as sent out notices to wealthy crypto traders informing them to pay taxes. The Authority for Advance Rulings (AAR) is the country’s adjudicatory body on tax matters..
The India Times reported on Friday that the country’s top seven bitcoin exchanges including Zebpay, Unocoin, Coinsecure, and Btcxindia are planning to ask the AAR for clarification. “At least one bitcoin exchange has already filed an application with the Maharashtra AAR for future tax liability,” the publication quoted sources with direct knowledge of the matter, adding that: “The question for many bitcoin players is whether GST is applicable on the total revenue or on the margins they earn,” explained Abhishek A Rastogi, a partner at Khaitan & Co law firm, noting that: Meanwhile, the country’s “indirect tax department is already looking at ways in which bitcoins can be brought under GST,” the publication detailed..
Furthermore, the sales tax department and VAT authorities have also launched their own investigation on the taxability of bitcoin. “For the exchanges, the rate could depend on what the authorities deem bitcoins to be — goods, services or currency,” the news outlet elaborated..
https://news.bitcoin.com/indians-crypto-taxation-exchanges-government-clarify/
This is some of the same heavy handed, reactionary policy that we have seen with China and S Korea. It seems that high population locales cannot afford not to tax bitcoin; and for India the is a caveat. They are very sensitive about licit/illicit capital flow, AKA "dark money". They recently replaced the banknotes over there for the very reason; they cannot allow capital flight given how bad it could be (they have a lot of users). This apparently just occurred to them
SO they will make crystal clear guidelines soon, wait for it (we are in a new quarter, these things are strategic). And for the first few years, they will go out of ther way to enforce these guidelines, given the potential for profit.
None of this would be happening if not for the price
