Rules on 1% tax deducted at supply for VDAs notified
The Finance Ministry has notified the principles governing the 1 per cent tax deducted at supply (TDS) for digital digital belongings (VDAs) because it turns into efficient Friday, together with the types to be submitted by the entities deducting the tax on cryptocurrency transactions.
Additionally, in separate notifications on Thursday, the ministry mentioned that the definition of VDAs shall embody non-fungible token (NFT) however not embody NFT whose switch ends in switch of possession of underlying tangible asset, and the switch of possession of such an asset is legally enforceable. It additionally notified that reward playing cards, reward factors, loyalty playing cards, subscription to web sites or platforms, and so on with out direct financial consideration will likely be excluded from definition of VDAs.
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