{"id":280499,"date":"2021-06-22T09:28:11","date_gmt":"2021-06-22T06:28:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/existing-indian-law-could-impose-2-levy-on-crypto-bought-from-offshore-exchanges\/"},"modified":"2021-06-22T09:28:11","modified_gmt":"2021-06-22T06:28:11","slug":"existing-indian-law-could-impose-2-levy-on-crypto-bought-from-offshore-exchanges","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/existing-indian-law-could-impose-2-levy-on-crypto-bought-from-offshore-exchanges\/","title":{"rendered":"# Existing Indian law could impose 2% levy on crypto bought from offshore exchanges"},"content":{"rendered":"

“# Existing Indian law could impose 2% levy on crypto bought from offshore exchanges <\/strong>”
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According to local sources, the Indian Government\u2019s 2% \u201cequalisation levy\u201d could be extended to crypto-assets purchased from off-shore exchanges. <\/p>\n

According to a June 22 report<\/a> from Economic Times, analysts are inferring that existing law could require a 2% levy to be added onto the settlement price of crypto bought from overseas-based crypto exchanges operating in India\u2019s market. <\/p>\n

The equalisation levy <\/em>was first introduced by the government in 2016, imposing a 6% tariff on payments for e-commerce supply and services to non-resident companies without a permanent establishment in India.<\/p>\n

However, the equalisation levy was updated in mid-2020. Now dubbed<\/a> the \u201cGoogle Tax,\u201d the updated legislation imposed a 2% tax on services provided by off-shore e-commerce operators conducting business in India, with tax experts inferring that the tariff may also app<\/a>ly to foreign-based crypto exchanges servicing Indian customers.<\/p>\n

\u201cThe way the new equalisation levy is worded and defined, it appears that it will also be applicable on cryptocurrency bought from an exchange not based in India,\u201d Girish Vanvari, founder of tax advisory firm Transaction Square, told Economic Times. He added: <\/p>\n

\u201cThe levy is on the selling price and companies may be required to add this to the cost of the crypto assets.\u201d<\/p><\/blockquote>\n

Amit Maheshwari, tax partner at tax consulting firm AKM Global, argued it would be difficult for India\u2019s government to impose a 2% levy without first establishing a broader regulatory apparatus addressing crypto assets, stating: <\/p>\n

\u201cIn the absence of any guidelines on the treatment of crypto assets, there is ambiguity in how these would be treated under the tax laws and FEMA (Foreign Exchange Management Act).\u201d<\/p><\/blockquote>\n

The regulatory status of crypto assets has long been a contentious issue, with Cointelegraph reporting on June 16 that the Indian government is reviewing whether to introduce a bill banning crypto\u00a0outright, with some officials arguing digital assets should be classified as an alternate asset class.\u00a0<\/p>\n

Related:<\/em><\/strong> <\/em>Lawmakers should treat crypto like gold or real estate: Indian tech magnate<\/em><\/p>\n

The Reserve Bank of India (RBI), appears to have maintained its\u00a0anti-crypto stance, with RBI Governor Shaktikanta Das stating the central bank has \u201cmajor concerns\u201d regarding cryptocurrency that it has conveyed to the government.<\/p>\n

In March 2020, India\u2019s Supreme Court repealed the RBI\u2019s two-year prohibition on local financial firms providing banking services to businesses operating with crypto assets.<\/p>\n