US retail giant Walmart Friday said it had complied with the tax obligations of its USD 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.
US-based retail giant Walmart Inc had completed acquisition of 77 per cent stake in Flipkart for about USD 16 billion in mid August.