FLIPKART: DELIVERY UNIT EKART ALLEGEDLY FIRED 300 WORKERS

FLIPKART: DELIVERY UNIT EKART ALLEGEDLY FIRED 300 WORKERS: Online sellers’ representative body AIOVA on Monday alleged that Flipkart’s delivery unit Ekart has fired about 300 seasonal workers, but the Walmart-backed e-tailer said such workers were hired through local third-party vendors for limited duration especially during festive time.




In a tweet, the All India Online Vendors Association said: “Employment practices of Ekart, owned by Flipkart and Walmart $wmt under scrutiny. 300 seasonal workers fired in Kheda. Lot of sellers blacked out. 100 years ago MK Gandhi started first Satyagraha from Kheda“. Flipkart in a statement said it continues to work with many reputed local third-party vendors who support in temporary staffing solutions to cater to festive demands.

“In cases where we have to reduce our contractual employee strength (contracted by the vendor), we do offer pre-agreed-upon severance packages, which has been the case here as well. We are working closely with our third-party vendors to ensure that they fulfil their obligations, statutory or otherwise, with full fairness,” the statement added.




Flipkart said it remains committed to be a partner with Gujarat to foster inclusive growth in the state. After Flipkart founders Sachin Bansal and Binny Bansal got notices from the Income Tax Department recently, Sachin Bansal has deposited Rs 699 crore as advance tax, including his capital gains tax from the Flipkart-Walmart deal, for Q1 FY19, according to media reports. His partner and co-founder Binny Bansal is yet to disclose the capital gains made of $16 bn sale to Walmart, sources in the tax department said, according to a Times of India report said.

In November, the I-T department had asked the Bansals to disclose their total income from the sale of Flipkart to Walmart and also to report the capital gains, the TOI had reported earlier. In May, Bentonville, Arkansas-based Walmart Inc acquired 77 percent stake in Flipkart for about $16 billion in its biggest acquisition till date. The deal valued the 11-year old Indian e-commerce firm at $20.8 billion.




Under Section 195 of the I-T Act, anyone making payment to non-residents is required to deduct tax (commonly known as withholding tax). As per Section 9 (1) of I-T Act dealing with indirect transfer provisions, the value of shares of a foreign company is deemed to be substantially derived from India, if the value of the Indian assets is greater than 50 per cent of its worldwide assets — a criteria that is apparently met in Flipkart’s case. Walmart paid Rs 7,439 crore tax on payments it made to buy out shares of 10 major shareholders of Flipkart in September but has not yet done so for another 34 who exited the Indian e-commerce company in the $16 billion deal, tax officials said.

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