India court rules against Tiger Global in 2018 Walmart deal tax case

India's top court has ruled on Thursday (January 15) that Tiger Global's $1.6 billion stake sale in Indian e-commerce firm Flipkart to Walmart is subject to taxes, handing a win to New Delhi in a landmark ruling on companies' use of international tax treaties.

Keenly watched by foreign investors, the dispute relates to how the U.S. investment firm used the India–Mauritius tax treaty to claim tax exemptions and New Delhi's fierce objections to it.

The ruling will set a precedent for how India applies tax principles in future cross-border deals.

Tiger Global had been locked in a legal tussle with Indian tax authorities over the 2018 stake sale, a deal that was part of U.S. retail giant Walmart's $16 billion acquisition of Flipkart.

Tiger Global did not immediately respond to a request for comment on the ruling.

Production: Lion Schellerer/Reuters