Despite the legal uncertainty, the Indian authorities intend from July 2018 to start to charge 18 percent tax on goods and services with cryptocurrency transactions, according to CCN.
Currently, this offer is considered by the Central Board of indirect taxes and customs duties. As the newspaper notes, the authorities can classify the cryptocurrency as a digital goods along with a variety of software products. Can also be represented by separate laws aimed at countering the use of the cryptocurrency in criminal activities.
The following are key points regarding the new legislative changes:
- buying and selling cryptocurrencies will be treated as supply of goods (the transfer, custody and registration of scriptaction will be treated as services);
- the value of cryptocurrencies can be determined on the basis of the transaction value in Indian rupees or its equivalent in any freely convertible currency;
- if buyers and sellers are in India, the transaction will be treated as supply of software;
- for the purposes of sale or transfer of the place of supply will be the location of registered persons (at the same time, for sales to unregistered persons the place of supply will be the supplier’s location);
- transactions outside the territory of the country will be considered subject to an integrated tax on goods and services, and also to be considered as export-import operations with the goods.
We will remind, in early April, the Reserve Bank of India banned controlled institutions to provide individuals and companies with services related to cryptocurrencies.
This decision has caused strong repercussions in the community — a few days later 18 thousands of Indian residents signed a petition against repressive measures of the authorities in relation to cryptocurrencies.