Walmart assures tax compliance in Flipkart deal

By

Maverick Martins

Published
Jul 13, 2018

Walmart Inc has agreed to comply with all requirements and co-operate with the Indian authorities for the completion of the Flipkart deal.
 

Walmart in May had announced it was acquiring roughly 77 percent of homegrown Flipkart for $16 billion, a deal which still needs the approval of India’s anti-trust regulator Competition Commission of India (CCI) and clearances from the tax authorities.
 
Massive protests have already been held in the country regarding the deal by traders and shopkeepers who fear loss of business and also alleged that the deal is a violation of the Foreign Direct Investment (FDI) policy.

However, Walmart had denied all such allegations and has told the Indian tax authorities that it will pay the taxes that are due on its Flipkart acquisition; the Economic Times reported citing an anonymous official.
 
“They have said whatever is the regulatory requirement they will fulfil,” an official aware of the development told the Economic Times.
 
 “We take seriously our legal obligations, including the payment of taxes to governments where we operate. We will continue to work with Indian tax authorities to respond to their inquiries,” a Walmart spokesperson said.
 
Walmart, which currently runs 21 cash-and-carry stores in India, had earlier said that it had been supporting local manufacturing in India by sourcing from small and medium suppliers, farmers and businesses run by women.