Business

Flipkart Co-Founder Sachin Bansal Deposits Rs 699 Crore As Advance Tax

HARSH RANJAN | 1
4218
| January 2 , 2019 , 15:30 IST

Flipkart co-founder  Sachin Bansal has paid Rs 699 crore as advance tax for the first quarter of 2018-19 which includes capital gains tax from his income on the sale of Flipkart stake to US retail giant Walmart.

Earlier, the I-T Department had issued notices to Flipkart founders Binny and Sachin Bansal to disclose their total income from the Walmart-Flipkart deal. The department had sent notices to Flipkart's promoters as well as 35 other stakeholders.

Walmart had late last year paid Rs 7,440 crore to the I-T department as withholding tax, months after it acquired 77% shares of Flipkart for around $16 billion. Walmart was later asked to furnish details of 46 shareholders of Flipkart, how much each of them had gained from the deal.

Sources said, "Bansals have not yet explained the total payments received from the sale of their venture to Walmart, the capital gain tax liability and how the tax payments have been scheduled."

"Sachin’s payments have come as part of his advance tax obligation for the first quarter of the current fiscal year," it added.

Flipkart is a Singapore-registered company, and SoftBank and eBay were its major shareholders prior to its sale to Walmart on May 9. 2018.

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After the I-T notice, Walmart had deposited Rs 7,439.4 crore with the tax department as withholding tax on account of payments made to non-resident shareholders of the company.

Not satisfied with the withholding tax deposited with the government, the I-T department further asked Walmart International Holdings, the buyer of majority shareholders of Flipkart Singapore, to explain the break-up of how much tax has been deducted from the payment to each shareholder.