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Author Topic: [2018-05-23] India May Levy 18 Percent Tax on Crypto Trading Starting July 2018  (Read 36 times)
ivanpoldark
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May 23, 2018, 11:06:12 AM
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India, the world’s second-largest country by population, may soon give a glimmer of hope to cryptocurrency investors after months of propagating a negative agenda against the digital asset class.

Move Subject to Council’s Approval

As reported on Bloomberg, India may soon levy an 18 percent Goods and Services Tax (GST) on cryptocurrency trading, notwithstanding their legal ambiguity in the country. Currently, the proposal is being considered by the Central Board of Indirect Taxes and Customs, and shall be presented before the GST council after it’s finalized.

As stated, the digital asset could be classified under “intangible goods,” on par with other software systems, with the authority adding that separate laws would be introduced to deal with the usage of cryptocurrencies for criminal activities.

Previously in December 2017, CCN reported on the Indian government’s crackdown on the cryptocurrency market, which saw both exchanges and traders scrutinized for dealing with and making money on digital assets. Legal authorities also sent a tax notice to over 500,000 traders, in a bid to collect huge taxes from their gains.

In April 2018, the Reserve Bank of India practically killed the cryptocurrency industry in the country, as it passed a statement asking all banks to withdraw their relationships with all cryptocurrency exchanges, including ending all banking services within three months of the directive.

Salient Points of The Tax Proposal

According to people with knowledge of the matter, who requested anonymity, the Income Tax department has realized the importance of taxing virtual currencies.

If the burgeoning digital asset market is not adequately taxed, it may add up to huge liabilities, which would make recovery difficult in the future. Thus, the proposal calls for immediate approval.

Below are the proposal’s major points:

- Purchase or sale of cryptocurrencies to be considered as supply of goods, and those facilitating transactions like supply, transfer, storage, accounting, among others, will be treated as services.
- Value of a cryptocurrency may be determined based on the transaction value in rupees or the equivalent of any freely convertible foreign currency.
- If buyers and sellers are in India, the transaction would be treated as a supply of software and the buyer’s location will be the place of supply.
- For transfer and sale, the location of the registered person will be the place of supply. However, for sale to non-registered persons, location of the supplier would be considered as the place of supply.
- Transactions beyond the Indian territory will be liable for integrated GST, and would be considered as import or export of goods. IGST will be levied on cross-border supplies.

Interestingly, the proposal seeks levying GST from July 1, 2017 – the very day when the government sought ending bank relationships with crypto-exchanges. However, the date remains unconfirmed.

Read more: https://www.ccn.com/india-may-levy-18-percent-tax-on-cryptocurrency-trading-starting-july-2018/

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May 23, 2018, 12:57:49 PM
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India may soon levy an 18 percent Goods and Services Tax (GST) on cryptocurrency trading

So they just now have noticed that they can benefit from Cryptocurrencies?

Quote
According to people with knowledge of the matter, who requested anonymity, the Income Tax department has realized the importance of taxing virtual currencies.

So this is another rumor, why the hell are they posting this?


Quote

Below are the proposal’s major points:

- Purchase or sale of cryptocurrencies to be considered as supply of goods, and those facilitating transactions like supply, transfer, storage, accounting, among others, will be treated as services.
- Value of a cryptocurrency may be determined based on the transaction value in rupees or the equivalent of any freely convertible foreign currency.
- If buyers and sellers are in India, the transaction would be treated as a supply of software and the buyer’s location will be the place of supply.
- For transfer and sale, the location of the registered person will be the place of supply. However, for sale to non-registered persons, location of the supplier would be considered as the place of supply.
- Transactions beyond the Indian territory will be liable for integrated GST, and would be considered as import or export of goods. IGST will be levied on cross-border supplies.

well they found a way to take advantage of crypto and at the same time clean the pockets of people with those fee


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May 23, 2018, 05:13:16 PM
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In India they are trying to impose a tax from the crypto currency, despite the great contradictions in the regulation of the crypto currency and the prohibition of the Reserve Bank of India to other banks to provide any services in the crypto currency. At the same time, the 18 percent tax is moderate. With such taxation, the crypto currency will be able to develop. However, in India, a systemic and unified approach to the regulation of the crypto currency is needed to eliminate internal contradictions.

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June 11, 2018, 04:24:02 PM
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To be honest, it will depend on the trust and government would ask us to declare our crypto earning and pay tax according to the same. It is nearly impossible to track the trade history of each and everyone to analyse it. On the other hand, governments might levy some tax on the miners and ultimately miners will collect it from us the users so this is still a complicated topic and we can expect clarity after the recognition of the cryptocurrencies. I don't think that India will take any decision anywhere in next 3 months regarding taxation on cryptocurrencies.

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June 11, 2018, 05:19:11 PM
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In India they are trying to impose a tax from the crypto currency, despite the great contradictions in the regulation of the crypto currency and the prohibition of the Reserve Bank of India to other banks to provide any services in the crypto currency. At the same time, the 18 percent tax is moderate. With such taxation, the crypto currency will be able to develop. However, in India, a systemic and unified approach to the regulation of the crypto currency is needed to eliminate internal contradictions.

Firstly will the India accept the btc is the primary question because considering  the past track record how the things has taken place it is quite evident that India will not be supporting it. Also in coming time it will be clearly be stated as already bank accounts are being closed of crypto related people.

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June 11, 2018, 09:28:12 PM
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Again, it's just an idea that nobody really knows whether it's actually going to come into action or not.

Even if this is put in place and established, I really don't think that it'll be that positive at all. They're still driving businesses away from their country because of the fact htat taxes or so high, and purchasing bitcoin would instantly mean a cut is taken from by the government.

However, even though this is the case, I would definitely like to see the government of India clarify their position on bitcoin. Right now, pretty much only the RBI has spoken about restricting banks that they regulate. And that is going to come into effect very soon.


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June 11, 2018, 11:01:56 PM
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governments might levy some tax on the miners and ultimately miners will collect it from us the users

2 words: Lightning network


so this is still a complicated topic and we can expect clarity after the recognition of the cryptocurrencies. I don't think that India will take any decision anywhere in next 3 months regarding taxation on cryptocurrencies.

It's impossible to regulate. That was always the point of Satoshi's design, and so far it's working pretty well. The reason regulation is only ever spoken of in relation to the points where cryptocurrency interfaces with fiat is because that's the only possible way. If people use cryptocurrency p2p, there's nothing that can be done, unless you're one of these people that thinks it's cool to pay money to mass-murdering gangs of thieves when you don't actually have to.

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