Windfall For Indian Government: Over Rs 10,000 Crore Earned In Taxes Via Walmart-Flipkart Deal 

The Income Tax department has earned over Rs 10,000 crore, following the conclusion of $16 Billion deal of Walmart acquiring 77 per cent of stake in Flipkart reports The Times of India.

The IT department had set 7 September as the deadline to pay a withholding tax which arose out of the deal. The withholding tax rate in long-term capital gains tax ranges from 10 to 20 per cent. The estimated tax liability for Walmart is $2 Billion which is upwards of 10 per cent of the transaction’s value.

The payment of tax liability was confirmed by Walmart “We take our tax obligations seriously and we have completed out tax withholding obligations under the guidance of Indian tax authorities” TOI quoted a Walmart official saying.

Walmart paid up the taxes on behalf of those selling shares such as SoftBank, eBay and Naspers. Apart from them, Flipkart founder Sachin Bansal is also reported to have made his payments.

The payment of taxes by Walmart deals is touted as a morale boost to Modis’ tax administration as Vodafone deal created a brawl during the UPA era.

Also Read: Pay Tax By 7 September: Income Tax  Department Asks Walmart On Flipkart Deal