New Delhi: Flipkart founder Sachin Bansal has reportedly paid Rs 699 crore as advance capital gains tax for the first quarter of 2018-19, stated a report. The income was made by selling a portion of Flipkart’s stake to US retail giant Walmart. The capital gains made on the sale of the stake would be announced by partner and co-founder Binny Bansal in the e-commerce platform later, a report by The Times of India quoted sources from the tax department as saying.
Notices were sent by the income tax department to the founders of Flipkart Sachin Bansal and Binny Bansal and other stakeholders to reveal the total sum gained from the sale of Flipkart stake. The Income Tax department also sent notices to Walmart to make sure that the company pays the tax due on capital gains made by foreign stakeholders of Flipkart. Walmart then disclosed that a sum of Rs 7,439.4 crore was deposited as withholding tax with the tax department on payments made to non-resident shareholders of the company.
Walmart acquired 77 per cent of Flipkart’s shares on May 9, 2018. Prior to that, the major shareholders of the Singapore based company Flipkart were SoftBank and eBay.
Investigations on the complex investment structure of Flipkart Ltd is underway. The aim of the tax department is to ascertain the actual capital gains tax incurred and the complete data wise fund flow of eBay and other subsidiaries into Flipkart Ltd. The tax department is also seeking to determine the tax break-up and the amount reduced from the payment made to each shareholder.
As per reports, the short-term capital gain tax applicable on SoftBank is a maximum of 40 per cent. eBay, on the other hand, will have to pay short-term capital gains tax of 20 per cent considering the DTAA (double taxation avoidance agreement) it has with Singapore.