The income tax department has fixed September 7 deadline for the US-based retail major Walmart to pay the withholding tax arising out of its deal with Flipkart, Business Standard reported.

The withholding tax is deducted at the source on interest or dividends paid to the company outside the boundaries of the country.

Walmart closed the deal with Flipkart last week after it got the approval from the Competition Commission of India (CCI).

According to the estimates examined by the paper, the US retailer's tax liability is around $2 billion, more than 10 percent of the transaction value.

The income tax department, according to the report, will examine and assess the total liability after Walmart deposits the tax.