I-T dept unearths over Rs 950-crore tax evasion by Flipkart unit, Swiggy: Report

Over Rs 950-crore tax evasion by food delivery start-up Swiggy and Instakart (a group firm of Flipkart) has been detected following last week’s survey operations in Bengaluru. According to the initial findings of the Income Tax Department, third party vendors were also involved in the concealment of taxable income, according to a Business Standard report.

‘’The survey operations on the companies resulted in impounding of incriminating documents evidencing tax evasion issues including non-deduction from tax deducted at source (TDS) on commission income and cancellation charges by Swiggy and their restaurants along with shifting of loss from Flipkart to Instakart,” said a tax official privy to the preliminary findings. Tax concealment in case of Walmart-owned Flipkart’s unit is about Rs 650 crore while the remaining estimation is related to Swiggy, he added.