Amidst all the confusion and issues over bitcoins, the Central Board of Excise and Customs (CBEC) have started probing on bitcoins in order to determine the rate of Goods and Services Tax (GST).
Earlier, the Income Tax department had started survey operations at major Bitcoin exchanges in India on suspicion of alleged tax evasion.
Reports say that the investigations began probe about a month back and top executives and promoters of some Bitcoin exchanges were asked to explain their business model and how much indirect tax either service tax or Value Added Tax (VAT) could be levied on the last financial year’s revenue.
Bitcoin is the most popular among digital currencies that allow online payments directly from one person to another without any middlemen or going through any financial institution. With many businesses beginning to accept them, there is the rising demand for such cryptocurrencies that come without any government control and allow anonymous transactions.
