Flipkart Wins 110 Crore Tax Dispute, First Such Case Won By Any Company
The Income Tax Appellate Tribunal (ITAT) rejected Indian tax authorities decision on Flipkart to pay INR 110 crores on the discounts offered by Flipkart in their capital expenditure account.
As per the law, the tax authority targeting and demonstrating how e-commerce companies asked for tax exemption from earnings generated through discounted products, which deduct their taxable earnings considerably.
However, the ITAT rejected the request of the tax government amounting Rs 110 crore from Flipkart for their year ended 31 March 2016 tax filings.
This is the first favorable ruling given by the tax tribunal on this litigative matter and will certainly give relief to e-commerce companies across the country incurring similar expenditure
Rakesh Nangia, managing partner at law firm Nang...