By Aditya Raghunath
Investing.com -- A report in the Economic Times said that the government is considering an equalization levy on trading cryptocurrencies.
An equalization levy, also known as the Google (NASDAQ: GOOGL ) Tax, is the tax that was introduced in India in 2016 to tax digital transactions when buying goods and services online from foreign sellers. The two conditions that need to be met for the levy to be applied are:
- The seller has to be a non-resident entity/individual.
- The annual payment to that service provider should exceed Rs 10 lakh in a financial year.
According to the report, the tax department is examining if the 2% levy is applicable on crypto assets bought by Indians from overseas exchanges. In 2020, India had expanded the scope of the levy to include ‘e-commerce supplies or services’.
The Economic Times report quoted Girish Vanvari, founder of tax advisory firm Transaction Square (NYSE: SQ ) who said, “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.”
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Stupidiest articleLike 0
what retailers are going to earn and pay tax when market is falling everyday 😀😀Like 3
The annual payment threshold for equalisation levy is Rs. 1 lakh; not Rs. 10 lakh. Pl rectify it.Like 5
JE VEUX VENDRE AJJOUJ MOSTAFA simo1961Like 0