TIL Desk/Business/New Delhi/ US-retail major Walmart may approach Indian authorities seeking withholding tax certificates for determining the tax liability in the USD 16 billion Flipkart buyout deal. Following CCI’s nod to the Walmart-Flipkart deal, the I-T department expects Walmart to approach it under Section 197 of the Income Tax Act within a fortnight.
“We were told that the deal would be closed within a week of the Competition Commission of India (CCI ) approval. So we expect them to file with the I-T authorities seeking withholding tax certificate under Section 197 within a fortnight,” an I-T official said.
Under Section 197, any NRI selling shares can give reasons to Indian authorities as to why they should be taxed at a lower or nil rate in India. Walmart last month assured the I-T department that it will fulfil all tax obligations.
Bengaluru-based e-commerce major Flipkart had in May shared share purchase agreement with tax authorities, and I-T department is currently calculating the tax rate that would be applicable for investors in Flipkart who are selling the shares to Walmart.