Despite the legal uncertainty, the Indian authorities intend to start charging an 18-percent tax on goods and services from cryptocurrency operations beginning from July 2018.
Currently, this proposal is considered by the Central Council for Indirect Taxes and Customs Duties. The authorities of the country can classify cryptocurrencies as digital goods on a par with various software products. Also, some laws may be submitted soon, aimed at counteracting the use of crypto-currency in criminal activity.
Below are the key points about the new legislative changes:
- purchase and sale of cryptocurrency will be considered as the delivery of goods (with the transfer, storage and accounting of crypto assets will be treated as services);
- the value of the crypto currency can be determined on the basis of the value of the transaction in Indian rupees or its equivalent in any freely convertible currency;
- if buyers and sellers are in India, then the transaction will be treated as the delivery of software;
- for the purposes of transfer or sale, the place of delivery will be the location of the registered person (at the same time, for the sale to unregistered persons, the place of delivery will be the location of the supplier);
- transactions outside the territory of the country will be considered an object of taxation of an integrated tax on goods and services, and also be considered as export-import transactions with goods.