New Delhi: Veteran retailer Walmart can seek a tax-free (TDS) certificate from the Income Tax Department to find out the tax liability in the $ 16 billion Flipkart deal. The Income Tax Department expects that the Walmart-Flipkart deal has now got CCI approval, within a fortnight, the US company can apply for a certificate under Section 197 of the Income Tax Act.
An Income Tax Department official said, "We were told that the deal will be completed within a week of the approval of the Indian Competition Commission (CCI). Therefore, we hope that Walmart can apply to the Income Tax authorities for seeking a certificate of tax withheldholding under Section 197 of the Act. Under Section 197 of the Income Tax Act, NRI (Overseas Indians) who are selling shares, can tell India's tax authorities such reason that on the basis of which tax should be imposed on them at low or zero rate in India. Walmart had assured the Income Tax Department last month that he would fulfill all his tax liabilities.
The e-commerce company Flipkart had submitted the documents of the purchase purchase agreement to the tax department in May. At present, the tax department is calculating the rate at which rates of Flipkart investors can be applied on the sale income. The official said, the Income Tax Department is investigating the purchase purchase agreement. It is also studying deeply that the investors have invested in the company through which country or jurisdiction. It is also being seen that they can get the benefit of any tax treaty in India.