Centre to start recovery of taxes from Tiger Global after SC verdict

The US-based investment firm’s substantial sale of Flipkart’s stake to Walmart Inc. was one of the largest exits by a foreign investor in the Indian e-commerce sector

India will revive tax proceedings against Tiger Global Management after a top court ruling related to the firm’s 2018 sale of its stake in online retailer Flipkart.

The revenue department will initiate action to recover taxes, a finance ministry official said Friday. The exit resulted in capital gains, with the aggregate consideration received exceeding Rs 14,500 crore ($1.6 billion), according to the official, who spoke on condition of anonymity as the person was not authorized to speak to the media.

The US-based investment firm’s substantial sale of Flipkart’s stake to Walmart Inc. was one of the largest exits by a foreign investor in the Indian e-commerce sector. The Supreme Court held that Tiger Global’s capital gains are taxable under domestic law, overturning a Delhi High Court ruling.

The ruling can set a precedent for how India applies tax treaties to offshore exits, potentially increasing uncertainty for global investors seeking clarity on capital gains.

India’s finance ministry and Tiger Global weren’t immediately available for comment outside of business hours.

A refund worth Rs 970 crore claimed by Tiger Global and which has been withheld will also be added to the tax demand that the department will now serve, the official said.