Published
Sep 10, 2018
Download
Download the article
Print
Text size

Government gains Rs 10,000 crore in tax from Walmart's Flipkart acquisition deal

Published
Sep 10, 2018

After consulting with the government, Walmart agreed to pay all tax dues as part of its 77 percent acquisition of Flipkart and the tax paid totalled over Rs 10,000 crore ($1.5 billion).

Walmart agreed to pay all tax dues as part of its 77 percent acquisition of Flipkart - Reuters


The Income Tax Department is now Rs 10,000 crore better off after Walmart paid the tax due on its purchasing of 77 percent of the e-commerce giant Flipkart. There was previous uncertainty over the situation as Walmart had paid $14 billion for the shares and then made a fresh investment of $2 billion. In the end, Walmart paid tax on basis of the estimated $14 billion share sale.

Walmart has confirmed that it cleared its tax liability but did not confirm the amount that it paid. "We take our legal obligations seriously, including paying taxes to governments where we operate. Following our Flipkart investment, we have now completed our tax withholding obligations under the guidance of the Indian tax authorities," a Walmart spokesperson responded to the Times of India.

In order to clear up the tax situation, a team of Walmart executives at the business’ headquarters in Bentonville held discussions with the head of the foreign taxation unit in the Income Tax Department, Akhilesh Ranjan. There was some controversy when some sellers sought exemptions from paying capital gains tax. This was denied by the government which fixed the deadline for clearing all dues for September 7.

Copyright © 2024 FashionNetwork.com All rights reserved.