WazirX has been fined Rs. 49.2 crore by the DGGI and Mumbai East Commissionerate for Tax Evasion.

Recently the government of India has planned new regulations to control the cryptocurrency Exchanges and cryptocurrency coins. WazirX was also involved in Probing, done by DGGI and it was slapped by DGGI with a handsome amount of fine.

Highlighted Facts

• Mumbai East Commissionerate has investigated the WazirX for Tax evasion.
• The case of Tax Evasion will be specially dealt with with the anti-tax evasion drive.
• The investigation of the case is still in progress and still, the chance is to hear the surprises.

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The Tax Evasion by many Cryptocurrencies has been detected while probing the working activities of all the cryptocurrency Exchanges in Mumbai. Including WazirX, many others have been fined.

The Cryptocurrency Exchanges were used to manage by Zanmai Labs and cryptocurrency WRX’s owner is Binance Investment and Seychelles.

As per the words in the press, it was used as a platform to either buy it or to sell it in either form in Rupees or WRX and it has to be done only with the WazirX app. The taxpayer used to charge the commission on every sale or purchase in the transaction.

Also, the press added, “However, the rate of commission is different for both transactions in Rupee attracts the commission of 0.2 percent and the transaction in WRX attracts the commission of 0.1 percent”.

While probing the facts came in the notice that the taxpayers used to collect revenue from the commission in the form of Trading Fees, deposit fees, and withdrawal fees.

The Taxpayer was used to pay only the tax which was warned in Rupees and not paying the tax on the trading in the WRX. They further told that the GST of a total of 18 % has been charged and it is applicable but, this amount of something 40 c5rore tax was not paid and also the commissioner added that on the spot something 49.2 crore rupees found which was not included in the GST and still the probe is going on.

The case has been investigated under the special anti-evasion drive and has been dealt with Mumbai zone CGST and DGGI.

The release also stated, “The CGST department will cover all the cryptocurrency Exchanges falling in the Mumbai zone and will also intensify this drive in the coming days”.

Still, the investigation is in progress and there is the possibility of divulgence.

Read More: Cryptocurrency Exchanges is under Probe for Tax Evasion of Rs 70 crore: DGGI