Back to News


April 8, 2021

Barter Agreement India


This exchange agreement will enter into full force at the time of the contract`s conclusion and will end with the exchange of the agreed goods covered in this agreement. By signing the following signatures, the contracting parties recognize that they fully understand and consent to the above conditions. GST law allows companies and individuals to obtain binding decisions on issues on which they seek clarification. “M/s. Durga Projects and Infra Structure Pvt. Ltd. 2019 (8) TMI 395 (AAR – Karnataka)” is such a preliminary decision by Karnataka, in which a real estate transaction was deemed a barter. Before looking at the tax considerations of an exchange, it is important to define precisely what an exchange is. In the layman, it is goods in exchange for goods. In the literal sense of the word, it consists of two essential things: PandaTip: compensation for this proposal indicates that once the exchange contract has been executed (and goods or services have been exchanged), damages or losses related to these property are not invoked against the original owner of that property.

At present, India`s trade regime and regulatory environment remain relatively restrictive. Technical barriers to trade (OTC), health and plant health measures (SPS), deviations from international standards and agreements, and discrimination based on India`s legislative or administrative measures affect a wide range of sectors, including goods, services, investment and public procurement. monil shah posted 10 comments on Timesofindia.com to earn the Wordsmith Level 1 badge. The fate of cryptocurrencies in India depends on a common thread, as the Supreme Court`s procedure on the issue of the government`s ban on cryptocurrency banking continues. An absolute ban on cryptocurrencies also seems likely, although undesirable according to experts. However, the legality of a transaction is not relevant to taxation. The trade in cryptocurrencies would still invite taxes. As far as direct tax is concerned, it may be capital gains or business income. Under the GST legislation, although there has been no clarity on this until now, it seems likely that these currencies will be treated as commodities and, therefore, their exchange would be as good as an exchange. However, there are no rules or guidelines. Regardless of this, its taxation is inevitable, bartering or not.

A comprehensive analysis of trade between India and its key free trade partners, discussed above, shows a significant increase in trade since the agreements came into force. SAFTA came into force on 1 January 2006 and, according to the Ministry of Trade and Industry, bilateral trade between India and other SAFTA member states increased from $6.8 billion in 2005-06 to $28.5 billion in 2018-19. India`s trade with SAFTA grew faster than its overall trade with the world. As a result, SAFTA`s share of India`s international trade increased from 1.6% in 2005-06 to 2.5% in 2018-19. At the same time, Indian exports to SAFTA countries grew faster than their imports from them, resulting in a significant increase in the trade surplus with these economies from about $4 billion to $21 billion.