IT deptt gains as this investor in Flipkart will pay Rs 2000 Cr tax
IT deptt gains as this investor in Flipkart will pay Rs 2000 Cr tax
Walmart purchased 77% of Flipkart stock, for $16 billion.Soft Bank purchased 22% shares of Flipkart last year for $2.5 billion.Just after this deal Soft Bank sold all 22% shares for $ 4.5 billion.As Soft Bank earned a profit of $2 billion (about Rs. 13,000 Cr), it will have to pay Rs. 2,000 Cr to Indian Government as short gain tax,as its investment was for less than 2 years. Walmart expects to do well in India being here for quite some time.
Largest E Com retail company Walmart purchased Flipkart for $16 billion. This is a big step by Walmart India's E Com industry. Walmart has purchased 77% stock of Flipkart and said in a press conference said that it is in India for the past quite some time,understands India's market, so it hopes to perform quite well here. Soft Bank purchased 22% shares of Flipkart last year for $2.5 billion. Just after this deal Soft Bank sold all 22% shares for $ 4.5 billion. As Soft Bank earned a profit of $2 billion (about Rs. 13,000 Crore). Hence it will have to pay Rs. 2,000 Crore to Indian Government as tax. Based in US, Soft Bank does not have 'Treaty Cover' ,hence it will not get any concession in tax. It will have to pay tax due to short term gain (Less than 2 years). If one invests in a non listed company for less than 2 years, then one has to pay 15% tax, and if one withdraws after more than 2 years of investment in a non listed company, it has to pay 20% tax for 'long term gains'. Ref. : https://www.financialexpress.com/hindi/business-news/flipkart-walmart-deal-softbank-to-pay-rupees-2000-crore-tax-to-income-tax-department/1162139/ --- Dated: May'10,2018.
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