Flipkart-Walmart deal: Tax dept grapples with Tiger Global's liability

According to an official, the tax department will seek the share purchase agreement from Flipkart to assess the tax liability and to find out if GAAR can be invoked

Tiger Global is set to make over $3 billion from the $16-billion Walmart-Flipkart deal. Taxing the windfall the venture capital fund makes, however, is going to be tricky for India.

With funds registered in Mauritius, Tiger Global has offices in Bengaluru, Hong Kong, Singapore and Australia and its headquarters is in New York. It has been investing in Flipkart since 2010 from Mauritius. And, thus, experts say Tiger Global’s investment in Flipkart — reportedly in tranches — may come under the Indo-Mauritius tax treaty. However, any failure on Tiger’s part to meet the limitation of benefit (LoB) clauses, under the