The Flip Side
The Walmart Flipkart deal is a possible nightmare for the tax department given the complex holding structure of the Indian e commerce giant.
The news of the Walmart Flipkart deal has set tongues wagging. It is expected to run into a tax tangle in India as experts predict that a Hutchison Vodafone like scenario could emerge given that the Walmart Flipkart deal will involve many overseas entities.
In the $16 billion deal, US based retail giant Walmart is buying 77 per cent in Indian e commerce company Flipkart, in which a majority share is held by a Singapore registered entity, Flipkart Singapore. Shares in this entity are, in turn, held by different investors prominently, Softbank (almost 23 per cent), Tiger Global (20.5 per cent) and Naspers (13 per cent). Chinese firm Tencent holds around 6 per cent stake, while promoters Sachin Bansal
