Supreme Court rules against Tiger Global in Walmart-Flipkart deal tax case

Tiger Global's $1.6-billion stake sale at the time of the Walmart-Flipkart acquisition deal in 2018 is subject to tax, Supreme Court says.

Tiger Global's $1.6-billion stake sale in Flipkart at the time of the Walmart-Flipkart acquisition deal in 2018 is subject to tax, the Supreme Court of India said on Thursday in what is seen as a landmark ruling on use of international tax treaties by companies.

Walmart acquired Flipkart for $37 billion in 2018 in what is still the largest e-commerce deal in India. (Reuters)

Keenly watched by foreign investors, the legal dispute relates to how Tiger Global used the India–Mauritius tax treaty to claim tax exemptions, and New Delhi's fierce objections to it. The ruling will have implications for how India applies tax principles in cross-border deals.

This is a developing story. More to come.