Walmart paid nearly $1 billion tax to India as PhonePe shifting base
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Bengaluru: The U.S. retailer Walmart Inc reportedly Wednesday confirmed it had paid Indian government nearly $ 1 billion in tax.
Tax was incurred after digital payments company PhonePe shifted its headquarters from Singapore to India.
Walmart owns PhonePe through Flipkart, the ecommerce giant, whose controlling stake was bought by the American retailer in 2018, thus getting the ownership of PhonePe.
Last month, the American retailer announced the completion of its separation of PhonePe from Flipkart.
It is reported that Walkmart would continue as the majority stakeholder in both the companies.
“Walmart has already paid most of the 78 billion rupees ($943.01 million)that was incurred as a capital gains tax after PhonePe investors sold their stake in the Singapore entity and invested in the Indian entity following the domicile change,” Reuters quoted as source as saying.
Though Walmart gave no details of the payment, sources say that Tiger Global, who is an investor in PhonePe, was not required to pay tax.
Bloomberg News earlier reported that Walmart and other PhonePe investors would have to pay nearly $1 billion after its domicile change. ($1 = 82.7140 Indian rupees), according to Reuters.