Income Tax dept asks Walmart to pay Flipkart deal tax by September 7

Estimates peg the tax value at $2 billion; govt to assess liability based on multiple seller details

Within days of Walmart concluding the $16-billion deal to acquire a 77 per cent stake in Flipkart, the income tax department has sprung into action to get its due from the transaction. The department has set September 7 as deadline for the Bentonville-based retail major to deposit a withholding tax arising out of the mega deal, it is learnt. 

Walmart closed the deal to buy a majority stake in Bengaluru-based Flipkart last week after getting an approval from the Competition Commission of India (CCI). The two companies had announced the deal in May. 

Estimates peg Walmart’s tax liability from the deal at