Binance challenges the $86 million tax penalty levied by the DGGI in India.
Binance is making a strong effort to counter the tax penalty of around $86 million that India’s Directorate General of Goods and Services Tax Intelligence (DGGI) imposed on it.
The matter pertains to fees that the cryptocurrency behemoth purportedly obtained from dealers in India between July 2017 and March 2024.
A representative for Binance attested to the company’s collaboration with Indian authorities, adding,
“At present, we are examining the notice’s specifics and are completely assisting with the tax officials in India.”
They stressed Binance’s dedication to scrupulously adhering to all local laws that have an impact on their business.
Hot regulation for cryptocurrency exchanges
The Indian Ministry of Finance’s DGGI asserts that Binance avoided some tax obligations within the allotted time.
This is the first time that an international platform like Binance has received a notification of this kind from the organisation entrusted with cracking down on indirect tax evasion. The agency has previously targeted Indian exchanges.
The DGGI’s Ahmedabad chapter sent out the notice as a first official when you think there may be a tax rule infringement. The representative for Binance restated:
“Binance is, and has always been, committed to adhering to relevant domestic legislations applicable to us.”
Does India simply detest cryptocurrencies?
India started limiting local access to foreign exchanges, including Binance, at the end of 2023. Major tech companies, including Apple and Google, removed Binance and other related apps from their platforms in India in compliance with government demands.
Concurrently, the nation has been honing its framework for taxing cryptocurrencies.
A 30% tax on profits from cryptocurrencies and other virtual digital assets, as well as a 1% Tax Deducted at Source (TDS) on transactions above a predetermined threshold, were included in the Union Budget 2022.
Within the cryptocurrency ecosystem, there has been much discussion regarding these tax rates’ impact on adoption and innovation. The Financial Intelligence Unit of India fined Binance over $2.25 million in June.
The legislative progress in India pertaining to cryptocurrencies and Web3 technologies appears to be sluggish, with possible postponements until mid-2025.
The Finance Committee’s Jayant Sinha stated that India requires clear, useful instances of how these new technologies can truly help the nation, particularly in light of how quickly international standards are evolving and the recent market turmoil brought on by the FTX and Terra scandals.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source : cryptopolitan