The Income Tax Department on Wednesday, 21 November issued notices to Flipkart founders Binny Bansal and Sachin Bansal asking them to disclose their total income after their deal with Walmart.
According to reports, the Bansals have been asked to explain their total payment received to from the Flipkart-Walmart deal, the capital gains tax liability and how they have scheduled these tax payments.
“There was a query received with regard to the sale of shares and payment of advance taxes. It happened a few months ago and I had already responded to the same,” Binny Bansal said.
Not only the Bansals, IT department have also sent notices to Flipkart promoters and 35 stakeholders. Both Bansals had more than 5 percent stake each in Flipkart.
So far, the Flipkart founders have not responded to the I-T notice sent them on October 18. However, IT has started receiving responses from other Indian stakeholders.
After IT notice in September, Walmart had paid Rs. 7,439 crore tax on payments it made to buy out shares of 10 major shareholders of Flipkart.But IT was satisfied with the withholding tax deposited to the government and therefore, IT again wrote to the Walmart International Holdings, the buyer of majority shareholders in Fipkart Singapore, to explain the break-up of how much tax have been deducted from payment to each shareholder.
Media reports suggests Walmart may pay $2 billion (around Rs 13,750 crore) withholding tax to authorities for the Flipkart deal. Withholding tax, or retention tax, is an income tax to be paid to the government by the payer of the income rather than recipient of the income. The tax is withheld or deducted from the income due to the recipient.
Walmart acquired about 77 percent of Flipkart in May, for nearly $16 billion in what was the US retail giant’s largest-ever deal and a move to take on arch rival Amazon in a key growth market.