Cryptocurrency buyers from India might face new difficulties with purchasing cryptocurrencies from overseas exchanges as the country's tax department is weighting whether it could impose the 2% on these purchases, the Economic Times reports, citing sources familiar with the matter.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
The so-called "Google tax" is focused on levying services provided in India by overseas companies. The tax is designed to discourage big e-companies diverting profits out of the country to avoid tax. However, Amit Maheshwari, a partner at tax-consulting firm AKM Global, believes it will not be an easy task for the government to impose the levy since India still has no clear rules for the cryptocurrency market.
"In the absence of any guidelines on the treatment of crypto assets, there is ambiguity in how these would be treated under the tax laws and FEMA," Maheshwari added.
India's new restrictions come after the government began reviewing key moments of the Cryptocurrency and Regulation of Official Digital Currency Bill. However, it remains unknown if the government has come to any conclusion on the matter. The government reportedly wants to introduce amendments to the existing bill itself, considering the evolving situation.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange