Flipkart deal: Walmart to pay $2 billion as tax to Indian government

Walmart (WMT) – Flipkart deal was wrapped up recently at a valuation of $16 billion making it the biggest e-commerce deal ever. The controversial Flipkart deal, which is poised to generate a lot of action in India, has certain roadblocks that could derail the deal. But in order to win a bigger slice of the e-commerce market, Walmart is ensuring that all the proceedings go on smoothly. The latest development is that the Arkansas-headquartered company has agreed to comply by the Indian government’s requirement by paying a tax of $2 billion.

This deal is seen as a game changer as it will unleash a new battleground between Walmart and its main rival Amazon (AMZN). According to a report by FactoryDaily, Walmart has agreed on paying a retention tax of up to $2 billion to Indian income tax department. If the deal sails through and the withholding tax is accepted by the authorities, this would be the largest tax payment made.