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Tax thorns haunt Walmart-Flipkart deal, foreign shareholders want clarity

AAR is a legally constituted body whose ruling is binding on the applicant as well as government authorities

Tax thorns haunt Walmart-Flipkart deal, foreign shareholders want clarity
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Shrimi Choudhary New Delhi
Tax-related issues are cropping up in the Walmart-Flipkart deal even almost two years after the transaction was done. 

A clutch of foreign firms who were shareholders in Sachin Bansal and Binny Bansal-founded Flipkart have moved the Authority of Advance Rulings (AAR) to seek clarity on the taxability of the capital gains arising out of the $16-billion deal struck in May 2018. 

American retail major Walmart reportedly deducted taxes from Flipkart's foreign shareholders including SoftBank, Naspers and Accel Partners to pay withholding tax to the government for capital gains made by these entities. A withholding tax, or a retention tax, is an income

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