BUSINESS
The tax authorities had set September 7 as the due date for depositing a withholding tax on the deal amount it paid to shareholders of Flipkart.
US retail giant Walmart Friday said it has complied with the tax obligations of its $16 billion acquisition of India's largest online retailer Flipkart but did not say the quantum of taxes it paid.
The tax authorities had set September 7 as the due date for depositing a withholding tax on the deal amount it paid to shareholders of Flipkart.
Withholding tax, or retention tax, is an income tax to be paid to the government by payer of the income rather than by the recipient of the income.
The tax is thus withheld or deducted from the income due to the recipient. In case of Walmart-Flipkart deal, the withholding tax pertains to the capital gains made by the shareholders of Flipkart.
"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 told PTI.
However, the company did not disclose the tax amount deposited with the I-T authorities at the time of the story going to wire.
US-based retail giant Walmart Inc had completed acquisition of 77 per cent stake in Flipkart for about USD 16 billion in mid August. As per the provisions of the I-T law, Walmart has to deduct withholding tax on payments made to sellers and deposit it with the Indian authorities on the seventh day of the subsequent month, which in this case is September 7.
Of the 44 shareholders of Flipkart who have sold stake to Walmart, the significant ones include SoftBank, Naspers, venture fund Accel Partners and eBay. Also co-founder Sachin Bansal has sold his stake to the US retail major.
As per domestic tax law, long-term capital gains tax is levied at 20 per cent for shares sold by foreign investors after 24 months of purchase.
However, the I-T law also provides for a taxpayer to pay taxes at a lower or nil rate if he is eligible to claim the benefits under the double taxation avoidance agreement between India and the country from where the investment was routed.
The I-T department has been reviewing Section 9 (1) of the I-T Act, which deals with indirect transfer provisions, to see if the benefits under the bilateral tax treaties with countries like Singapore and Mauritius, could be available for foreign investors selling stakes to Walmart. Singapore-registered Flipkart Pvt Ltd holds majority stake in Flipkart India.
According to sources in the department, the tax officers would now look into the taxes deposited by Walmart for every shareholder who sold shares in Flipkart. If any discrepancy is found, then it would write to Walmart seeking its response for failing to deposit the taxes.
Watch: Can you identify all the actors in this clip from 1991?
Priyanka Gandhi to file nomination for Wayanad Lok Sabha bypoll today
Meet woman, whose father used to sell milk, cracked UPSC exam with AIR 62 to become...
Delhi: No water supply in Capital for 12 hours on Friday due to…; check list of affected areas
Salman Khan resumes shooting for Sikandar amid death threats from Lawrence Bishnoi
India, Pakistan extend Kartarpur Sahib corridor agreement for five years
DNA TV Show: What is BRICS currency? Is it possible to introduce it today?
IPL 2025: Three-time IPL champion set to join Gujarat Titans as batting coach - Reports
PM Modi, Xi Jinping to hold bilateral meet on sidelines of BRICS Summit on Oct 23, first in 5 years
New Himalayan snake species named after Academy Award winner Leonardo DiCaprio, it will be called…
Cyclone Dana: Schools closed in West Bengal, Odisha for 4 days from...
Delhi govt to provide special assistance of Rs 5000 monthly to...
Rape-accused Hollywood producer Harvey Weinstein diagnosed with bone marrow cancer
IND vs NZ: Sarfaraz Khan or KL Rahul; Who will find a spot in 2nd Test? India coach says…
Mumbai Police interrogates Ekta Kapoor, her mother Shobha Kapoor in case under POCSO act
Mukesh Ambani may team up with govt to sell food products through...
Bengaluru: Several feared trapped as under-construction building collapses
Best Cheap VPS Hosting Providers: Top Picks for Hosting Under USD 10
Zomato CEO Deepinder Goyal set to raise Rs 8500 crore, says it is meant to...
BRICS Summit 2024: PM Modi meets President Putin, says India ready to cooperate in...
Meet man, Nepal's only billionaire, owns this instant noodles brand, his net worth is Rs…
‘Rohit Sharma changed Playing XI before toss’: Sanju Samson makes BIG revelation about T20 WC final
BJP leader's son marries Pakistani woman online, after he fails to get visa, watch viral video
Good news for Gautam Adani, his Rs 121000 crore company's net profit jumps 172% to Rs...
Empowering Neurodiversity: Strategies for Inclusive Supplier Diversity By Harshila Gujar
Big move by BSNL, launches 7 new services to woo users, challenge for Mukesh Ambani's Reliance Jio
India star Sarfaraz Khan blessed with a baby boy, pics go viral
Parineeti Chopra has a perfect reply to hubby Raghav Chadha's heartwarming birthday wish
'Will work with India to implement...': China on LAC patrolling agreement
Tata-BSNL partnership promises BIG relief for customers, set to provide fast internet in...
'This is pathetic, disgusting': Nia Sharma faces backlash for promoting 'vagina tightening' tablets
Big move by Gautam Adani: Ambuja Cements to acquire this cement brand for Rs 8100 crore
Why US Presidential Election is always held on first Tuesday in November?
'Perfect for him': Aamir Khan in talks to play Kishore Kumar in Anurag Basu's film; fans react
After calling Prabhas a 'joker', Arshad Warsi says 'everyone is allowed to...'
BRICS Summit Prelude: India and China move to defuse border tensions
Sakshi Malik’s BIG claim, says BJP's Babita Phogat wanted to be WFI chief, encouraged wrestlers to…
India launches its 4th nuclear-powered submarine, set to play major role in…
Uttar Pradesh: 6 killed in oxygen cylinder blast in Bulandshahr house
Why Kriti Sanon used to be called 'Tiger didi'? Actress reveals reason
'Zyada Hero Ban Raha Hai': Rohit Sharma's chat with teammate caught on stump mic, video goes viral
Prince Narula, Yuvika Chaudhary share FIRST photo of their daughter
Delhi AQI October 22: Air quality in ‘very poor’ category, Centre imposes GRAP Stage II from today
Man who threatened Salman Khan, demanded Rs 5 crore, issues apology: 'It was...'
Karni Sena announces Rs 1,11,11,111 for any police officer who kills Lawrence Bishnoi
US Presidential Elections 2024: Republican Donald Trump sued for defamation by Central Park Five
‘Will be able to…’: EAM S Jaishankar explains India, China patrolling deal along LAC
'Even double standards are...': Jaishankar's big attack on Canada amid diplomatic row
Hyundai Motor India IPO listing today: All you need to know about largest-ever IPO in India