Binance Contests $86 Million Tax Notice from India: Report
In one of the latest developments between India and Binance’s Tussle, the exchange has reportedly challenged India’s tax notice.
Key points:
- Binance received an $86 million tax showcause notice from Indian authorities
- The notice covers alleged tax evasion from July 2017 to March 2024
- Binance reportedly earned over $476 million in transaction fees from Indian users
- This follows a $2.2 million fine imposed on Binance in June 2024 for regulatory non-compliance
The decision to challenge the Directorate General of Goods and Services Tax Intelligence (DGGI), a branch of India’s Ministry of Finance, was shared with CoinDesk by a person familiar with the matter.
DGGI issued the notice to Binance, claiming the exchange had been collecting fees from Indian customers without proper tax compliance.
Also read: Crypto Funds See $528M Outflows as Bitcoin and Ethereum Bleed
India’s notice to Binance targets fees collected by the exchange
The tax notice specifically targets fees collected by the exchange from Indian users trading on its platform. According to sources close to the matter, these fees were allegedly transferred to Nest Services Limited, a Binance Group company based in the Seychelles.
This latest challenge comes on the heels of Binance’s recent regulatory struggles in India. The exchange faced a fine of approximately $2.2 million in June 2024 for providing services to Indian clients without adhering to the country’s anti-money laundering rules.
However, it’s worth noting that the exchange subsequently gained approval from India’s Financial Intelligence Unit (FIU) as a registered entity earlier this year.
The Binance app and website are currently blocked for Indian users. The exchange’s apps were also delisted from the Google Play Store and Apple Store apps in the country.
