2024

Online

<ul>
 <li>Binance disputes an $86 million tax notice from India's Directorate General of Goods and Services Tax Intelligence.&nbsp;&nbsp;</li>  
 <li>Binance is accused of collecting fees from Indian customers without GST registration from 2017 to 2024.&nbsp;&nbsp;</li>  
 <li>The investigation classifies Binance's earnings as OIDAR, complicating their tax obligations in India.&nbsp;&nbsp;</li> 
</ul>  
<p>The largest cryptocurrency exchange in the world, <a href="https://cryptonewsland.com/binance-founder-cz-serves-half-of/" target="_blank" rel="noopener noreferrer nofollow">Binance</a>, is arguing against a $86 million tax show cause notice that the Directorate General of Goods and Services Tax Intelligence (DGGI) in India issued. A notice regarding the fees collected from Indian customers who traded on Binance between July 2017 and March 2024 was distributed by the Ahmedabad chapter of the DGGI. This action is part of India's larger effort to ensure compliance with its tax laws.</p>  
<h2 class="wp-block-heading" id="h-allegations-and-non-compliance">Allegations and Non-Compliance</h2>  
<p>The notice claims Binance collected fees from Indian customers <a href="https://cryptonewsland.com/hong-kongs-futu-securities-launches-bitcoin-and-ether-trading-with-new-client-promotions/" target="_blank" rel="noopener noreferrer nofollow">trading</a> virtual digital assets (VDAs) without registering under India's GST system. India is pushing to make sure all financial activities, including those with digital currencies, follow its tax laws. In June 2024, Binance was fined $2.2 million for providing services to Indian clients without following anti-money laundering rules. Despite this fine, Binance got approval from India's Financial Intelligence Unit (FIU) as a registered entity. It committed to following the Prevention of Money Laundering Act (PMLA) and VDA tax rules.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/worldcryptospot/status/1820716130140356821
 </div>
</figure>  
<h2 class="wp-block-heading" id="h-efforts-to-comply-and-ongoing-issues">Efforts to Comply and Ongoing Issues</h2>  
<p>Binance has faced criticism for not fully following Indian regulations, which led to a tax leak and an initial ban. Reports say Binance did not comply with the 1% tax deducted at source (TDS) on registered exchanges, giving it an advantage over others. The current investigation by DGGI focuses on Binance's failure to register for GST. It is separate from the FIU and classifies Binance's services as Online Information and Database Access or Retrieval Services (OIDAR). These services are delivered online without any direct contact with the supplier.</p>  
<h2 class="wp-block-heading" id="h-oidar-classification-and-financial-implications">OIDAR Classification and Financial Implications</h2>  
<p>Reports show Binance earned more than $476 million in transaction fees, which were sent to a Binance Group Company, Nest Services Limited, in Seychelles. Classifying this revenue under OIDAR services adds more complexity to Binance's tax obligations in India.</p>  
<p>Binance's attempts to comply with Indian rules have been difficult. The exchange's approach to following regulations has caused concern among Indian authorities. The investigation by DGGI is a significant step in ensuring compliance with the GST framework. Binance's challenge to the $86 million tax notice highlights the complex issues of regulating digital asset exchanges worldwide</p> 
<p>The post <a href="https://cryptonewsland.com/binance-fights-86m-tax-notice-from-indias-dggi-over-compliance-issues/" rel="noopener noreferrer nofollow">Binance Fights $86M Tax Notice From India’s DGGI Over Compliance Issues</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Binance Fights $86M Tax Notice From India’s DGGI Over Compliance Issues

Table of Contents

Crypto News Land

Other articles published on Aug 7, 2024

New Ripple-DIFC Partnership Aims to Boost Blockchain in the UAE

Bitcoin ETFs Struggle with $149M Outflows as Ethereum ETFs Gain $98M Inflows

Tokyo's BitFlyer Acquires FTX Japan, Aims For Crypto ETFs

Solana StruggleS for ETF Approval Amid SEC Hurdles, Sygnum Bank Analyst Says

The Collapse Of The Trump-themed “DJT” Token By Martin Shkreli

Chainlink Proof of Reserve Now Backs 21Shares Core Ethereum ETF

Join our free newsletter for daily crypto updates!