Cryptocurrency exchanges

Equalisation Levy May Make Purchasing Cryptocurrencies From Overseas Exchanges More Expensive: Report

India had in 2020 expanded the scope of equalisation levy to cover ‘e-commerce supplies or services.

June 22, 2021 / 10:45 AM IST

The tax department is reportedly examining whether the 2 percent levy is applicable on cryptocurrency assets bought online by Indians from overseas exchanges (Representative Image: Needpix)

The tax department is reportedly examining whether the 2 percent levy is applicable on cryptocurrency assets bought online by Indians from overseas exchanges (Representative Image: Needpix)

Purchasing cryptocurrencies from exchanges outside the country might become slightly more expensive if equalisation levy, or Google tax, is imposed on the assets.

The tax department is examining whether the 2 percent levy is applicable on cryptocurrency assets bought online by Indians from overseas exchanges, The Economic Times reported.

Moneycontrol could not independently verify the story.

India had in 2020 expanded the scope of equalisation levy to cover ‘e-commerce supplies or services’.

“The 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,” said Girish Vanvari, founder of tax advisory firm Transaction Square told The Economic Times.

“The levy is on the selling price and companies may be required to add this to the cost of the crypto assets,” he said.

There is no clarity on whether cryptocurrencies as goods, services, or commodities, experts told the publication.

Given that the price of cryptocurrencies are highly volatile, the 2 percent additional tax could make a significant difference to the cost.

–> The tax department is examining whether the 2 percent levy is applicable on cryptocurrency assets bought online by Indians from overseas exchanges, The Economic Times reported.

Source: https://www.moneycontrol.com/news/business/cryptocurrency/equalisation-levy-may-make-purchasing-cryptocurrencies-from-overseas-exchanges-more-expensive-report-7068671.html

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