I-T dept to Seek Share Purchase Pact from Flipkart
The Income Tax department will seek purchase agreement from Flipkart on the mega e-commerce USD 16 billion buyouts by US retail mammoth Walmart to assess the tax liability and also find out whether the General Avoidance Rule provisions can be invoked as informed by an official related with the matter.
The department id presently is referring to Section 9(1) of the Income Tax Law, which deals with the indirect transfer provisions to seek if the benefits under bilateral tax treaties with countries like Singapore and Mauritius could be availed by foreign investors such as Walmart.
Singapore registered Flipkart Pvt Ltd has majority stakes in Flipkart India. Post definitive agreement between the companies, Walmart will hold 77 percent stake in the Singapore entity for USD 16 billion. The ...