The Mumbai Internal Revenue Service reported that tax evasion was discovered during an audit of the tax returns of the WazirX cryptocurrency exchange.
According to the Indian Tax Service, the exchange has not paid 405 million rupees ($ 5.4 million) in taxes. Tax authorities issued an invoice to WazirX for 492 million rupees ($ 6.62 million), including penalties and fines for non-payment.
“The platform takes a commission from each transaction in rupees or WRX tokens. For transactions in rupees, the exchange charges a fee of 0.2%, and for transactions in WRX – 0.1%. But taxes were paid only on income generated from transaction fees in rupees, ”the tax office said in a statement.
Note that the income tax for businesses in India is 18%. Thus, the platform received more than $ 30 million from commissions for transactions in WRX. The volume of commissions for transactions with rupees was not disclosed.
“We are investigating transactions on all cryptocurrency platforms falling under our jurisdiction,” Indian tax authorities warned.
Recall that WazirX has already come to the attention of Indian law enforcement agencies. In the summer of 2021, the Indian Enforcement Administration (ED) accused the site of conducting illegal transactions with crypto assets and money laundering.
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