Topic: Tax dept starts probe into Bitcoin exchanges to ascertain rate they can be taxed (Read 157 times)

The indirect tax department has launched an investigation into Bitcoin exchanges operating in India to ascertain at what rate they can be taxed under the goods and services tax (GST) regime, two people with direct knowledge of the matter said.

The development comes as the income tax department launched searches on top Bitcoin exchanges including Zebpay, Unocoin and CoinSecure on Wednesday.

According to the indirect tax officers, According to the indirect tax officers, the investigations began probe about a month back and top executives and promoters of some Bitcoin exchanges were asked to explain their business model and how much indirect tax — either service tax or value-added tax — could be levied on the last financial year's revenue.

"There is ambiguity around how much sales tax is applicable on revenues of these startups as the product they deal in is not defined by the current tax laws," . said a person with direct knowledge of the matter. "No satisfactory answer is yet provided by any of these Bitcoin startups."

Asenior executive at one of the top seven Bitcoin exchanges in the country confirmed that both direct and indirect tax officials have been questioning the company about its business model and taxability. "While the indirect tax department has been calling senior executives since mid-November, the direct tax officials started reaching out to us two weeks back," the person said.


https://economictimes.indiatimes.com/news/economy/policy/tax-dept-starts-probe-into-bitcoin-exchanges-to-ascertain-rate-they-can-be-taxed-under-gst/articleshow/62090482.cms