8.7 Crore INR penalty on Binance owned WazirX crypto exchange

Reportedly, the Income-tax department fined and collected the tax from the Crypto giant exchange WazirX. 

Wazirx is a popular crypto exchange of India and this exchange is not only popular but also worth it for the crypto investors, who want to transfer their funds on Binance exchange without any transaction fees from Wazirx to Binance and vice versa. 

According to reports, the WazirX exchange was evading 40.5 crore INR tax. But now the Income-tax department collected all the outstanding taxes with a net fine of 8.7 crores India national rupees. 

On 31 December, Economic Times published a report on this matter of WazirX. According to the report, the income tax department took strict action against the Wazirx Exchange and collected the funds in the evening of 30 Dec.

According to the GST Tax department, Wazirx exchange is running its own coin “WRX token”. And a total of 18% tax is applicable on these token operations. But the exchange was not paying taxes which are applicable on his own token.

The tax department of Zanmai Labs said that Wazirx and its coins are owned by Binance exchange. 

On the other hand, the Investigator department said that Wazirx allows its users to buy & sell crypto assets with the use of an Indian national rupee and through Wazirx token. 

Wazirx makes 0.2% trading commission fees from their users and 0.1% from the users who opt for WRX tokens to buy crypto assets. 

Income tax investigators said that Wazirx is paying taxes for a commission made through fiat-crypto traders but not for buy-sell assets with wrx tokens. 

“But in cases where the trader opts for transaction in WRX coins, the commission charged is 0.1% of trading volume and they were not paying GST on this commission”, officially stated

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