July 1, India will impose an 18% tax on transactions with cryptocurrencies

Indian authorities consider the feasibility of taxation of cryptocurrency transactions in the country. The tax office is considering the introduction of an 18% tax on goods and services from cryptocurrency transactions from 1 July 2018.

The authorities intend to classify the cryptocurrency as a digital goods along with a variety of software products, the development of appropriate draft laws aimed at countering the use of the cryptocurrency in criminal activities.

«Purchase or sale of cryptocurrencies should be treated as supply of goods, and the transfer and storage – as-a-service. The price of cryptocurrencies can be determined based on the value of transaction in rupees or equivalent in any freely convertible foreign currency», – says the Ministry.

According to representatives of regulators from India, if buyers and sellers are in the country, the transaction will be treated as a 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 location of the supplier. Transactions outside 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», – summed up in the tax office of India.

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