According to reports, the tax department is looking into whether the 2 percent tax is applicable to cryptocurrency assets purchased online by Indians using overseas exchanges.
If a Google tax or equalisation levy is imposed on assets, it might make purchasing cryptocurrencies from foreign exchanges a little more expensive.
The Economic Times reported that the tax department is looking into whether the 2-percent levy applies to cryptocurrency assets purchased online by Indians using overseas exchanges.
Moneycontrol was unable to independently verify the story.
India has expanded the coverage of equalization levy in India to include e-commerce supplies and services.
According to Girish Vanvari (founder of Tax advisory firm Transaction Square), “The new equalisation levie is written and defined in such a way that it appears that it will also apply to cryptocurrency purchased from an exchange not located in India.”
He said that the levy was on the selling price, and that companies might be required to add it to the cost for crypto assets.
Experts told the publication that there isn’t any clarity about whether cryptocurrency can be used as commodities, goods, or services.
The price volatility of cryptocurrency can make the 2 percent tax a significant cost-saving measure.