India considers taxing crypto purchases from overseas exchanges — RT Business News

According to reports, India’s tax authorities intend to impose a “countervailing levy” on crypto assets, forcing investors to pay an additional 2% for any purchase made on exchanges outside the country.

The country’s digital tax, popularly known as the “Google Tax”, went into effect over a year ago. It is charged at a rate of 2% on consideration given to non-residents running digital businesses that, among others, target the Indian market.

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The countervailing charge could be added to the selling price and so exchanges may need to add it to the cost of the assets, according to Girish Vanvari, founder of tax consultancy firm Transaction Square, as quoted by the Economic Times.

“As the new equalization levy is formulated and defined, it seems to apply to cryptocurrencies that were bought from an exchange that is not based in India,” he said.

However, analysts have expressed doubts about the feasibility of applying the tax to crypto investments given the underdeveloped regulatory framework around cryptocurrencies.

READ MORE: Bitcoin out, digital rupee in: India cracks down on private cryptocurrencies and tries to launch its own digital coin

“As there are no guidelines on the treatment of crypto assets, there is a lack of clarity about how they are treated under tax laws and the FEMA (Foreign Exchange Management Act),” Amit Maheshwari, partner at the tax consultancy AKM Global Global, told the media.

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