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. In case of Walmart-Flipkart deal, the withholding tax pertains to the capital gains made by the shareholders of Flipkart. 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. Of the 44 shareholders of Flipkart who have sold stake to Walmart, the significant ones include SoftBank, Naspers, venture fund Accel Partners and eBay.

Source: dna September 07, 2018 13:07 UTC