Quote from: boogaloo2 on April 02, 2019, 03:23:20 AM

Thanks for your reply avikz! I have a few more questions if you don't mind...

1. I am a freelancer but normally I'd be liable to register for GST because my income in INR would be more than 20lpa. From what I know, export of services under GST is zero rated but I'll need to furnish proof that I'm receiving money in a foreign currency. In case of getting paid in Bitcoin, that would not be possible since I won't receive anything in my bank account. Would you know anything more about how I can handle this?
2. When paying TDS and income tax, do you think I should pay it based on my invoice amount as opposed to the value of BTC?
3. Also, if I convert BTC to INR in the future, will there be tax issues at that point since I'll be receiving money in my bank account then?
4. RBI has said that bitcoin is not legal tender, so will I be doing something illegal by receiving money as BTC?

Thanks

Ok so let me answer based on my current understanding. I may be wrong so I would advice you to get in touch with @cryptokanoon twitter handle through DM. It is run by a lawyer who has a very deep understanding about the crypto taxation.

1. Since bitcoin is not a recognized form of currency, you won't be able to show it as a foreign currency. But there is a workaround available,

Find an exchanger service who would provide you paypal in exchange of your bitcoin. Then you can cash out the paypal funds to your bank account. This way you can establish the fact that you are earning in foreign currency.

2. Ideally it should be invoice amount. But I am unsure about it.

3. Probably yes because the value of bitcoin may change from the time you have invoiced. Instead, exchange your bitcoins immediately after receiving it to keep a clear accounting.

4. Probably yes! Your bank can definitely ask you for the source of the funds and if they see any association with cryptos, you may be in trouble. However, if you exchage it through paypal, it might just save you!

Since you are invoicing for more than 20 LPA, I would advice you to get a professional help!