Foreign Crypto Exchanges May Have to Pay 18 Percent Tax in India
Foreign cryptocurrency trading platforms with customers from India may have to pay an 18 percent goods and services tax (GST), according to a report by The Economic Times that cites people familiar with the matter.
Overseas companies that provide Online Information Database Access and Retrieval (OIDAR) services and do not have physical presence in India can appoint a person who will be liable for paying taxes.
On July 1, Reuters reported that Indian exchanges were still struggling to find banking partners due to the Reserve Bank of India’s hawkish stance on cryptocurrencies.
WazirX, the largest Indian crypto exchange, has partnered with TRM Labs for detecting cryptocurrency fraud after it received a notice from the Directorate of Enforcement (ED) earlier this month.