A tax of 18 % on crypto-currencies in India

The indian government is considering imposing a type of consumption tax for the trade of crypto-currencies and mining. On the other hand, this proposal may also be a measure retroactive. Thus, all transactions performed in the past will also be imposed.

Below are the details of this proposal in English :

A tax on the sale of crypto-currencies

The Office indian general of taxes and customs is working on a bill to impose a tax of 18 % on the digital currency. This proposal will be considered by the Council of the tax on products and services once it is finalized. This measure relates to the purchase and sale of crypto-currencies. They must be treated like property. Thus, transactions such as supply, transfer, storage and accounting of virtual currency will be taxed. The value of a crypto-currency may be determined on the basis of the transaction value in indian rupees or equivalent of any foreign currency freely convertible.

Source : Pixabay. Proposal an act to impose a tax on crypto-currencies in India.

If the buyers and sellers resident in India, the transaction will be treated as a supply of software and the location of the buyer will be the place of supply. For the transfer and sale, the location of the person registered will be the place of supply. However, for sales to unregistered persons, the location of the provider would be considered the place of supply. Transactions conducted outside of indian territory will be subject to the tax on products and services.

A tax retroactive

The tax on products and services entered into force on July 1, 2017. The indian government now considers that the tax on crypto-currencies will be applied retroactively from the application of this measure. This means that investors should pay for the actions they have taken about a year before the new policy.

If this tax proposal is adopted, the aspect retroactive is most likely to be challenged by traders and exchange platforms. The companies operating in this sector have already had to turn to the courts regarding the prohibition for banks to deal with them.

Source : NewsBitcoin