Home / Companies / News / Tax thorns haunt Walmart-Flipkart deal, foreign shareholders want clarity

Tax thorns haunt Walmart-Flipkart deal, foreign shareholders want clarity

AAR is a legally constituted body whose ruling is binding on the applicant as well as government authorities

Premium

3 min read Last Updated : Feb 27 2020 | 9:18 AM IST

Tax-related issues are cropping up in the Walmart-Flipkart deal even almost two years after the transaction was done.

A clutch of foreign firms who were shareholders in Sachin Bansal and Binny Bansal-founded Flipkart have moved the Authority of Advance Rulings (AAR) to seek clarity on the taxability of the capital gains arising out of the $16-billion deal struck in May 2018.

American retail major Walmart reportedly deducted taxes from Flipkart's foreign shareholders including SoftBank, Naspers and Accel Partners to pay withholding tax to the government for capital gains made by these entities. A withholding tax, or a retention tax, is an income

Topics : Walmart Flipkart Walmart-Flipkart deal ecommerce

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in