Tax obli­ga­tions in Flipkart deal will be ful­filled: Wal­mart

Business Standard - - COMPANIES -

US re­tail gi­ant W al mart has as­sured the In­dian in­come-tax depart­ment that it would ful­fil all tax obli­ga­tions on its pro­posed $16-bil­lion Flipkart buy­out, an of­fi­cial said. In May, the I-T depart­ment had writ­ten to the Wal­mart, say­ing that the US com­pany can seek guid­ance about the tax li­a­bil­ity un­der the I-T Act. This was af­ter Wal­mart, on May 9, an­nounced that it would pay about $16-bil­lion to buy about 77 per­cent stake in Flip kart. Un­der Sec­tion 195 of the Act, any­one mak­ing pay­ment to non-res­i­dents is re­quired to de duct tax (com­monly known as with­hold­ing tax).

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