Members should treat a BCI Trade Rupees as a virtual currency, they would be considered as cash rupee transaction from a tax perspective. Barter transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions.  Therefore, the advantages and disadvantages are similar to ordinary cash revenue or expenses.

Trading may result in tax liability when selling and attract tax credit when purchasing. It may also involve the Fringe Benefits, Sales Tax and Capital Gains Legislation.

 “When an entity that is a member of a Barter Club India makes a taxable supply to another member, there is a liability for tax, including goods and services tax.”

Trading is not designed to be used as a means of tax evasion or avoidance. BCI members should treat sales and deductible purchases as they would treat a cash transaction. Opening a BCI Trade account is similar to opening another bank or credit card account.