- The Reserve Bank (RBI) slashed by half its US dollar purchases in May from the month before to just about dollar 2.5 billion as the inflows slowed amid uncertainty over US interest rates and elections The central bank bought dollar 5.1 billion and sold dollar 2.6 billion in May, taking net spot dollar purchases to dollar 2.5 billion, according to the latest figures released by the RBI. This is almost half the level of net dollar purchases in April this year, when the central bank bought net of dollar 4.9 billion from the spot market. The central bank was a net seller in May 2018, during which it sold dollar 5.8 billion.
- The central bank has remained a very passive participant in the forward markets as well. It bought dollar 224 million in the forward markets in May, RBI data showed. Foreign portfolio investors were cautious during the month bringing in a little less than dollar 1 billion during the month. Also, foreign direct investments slowed during the month. The rupee weakened by about 0.1% during the month to end at dollar 69.65 by end May. But after the general elections, there has been an improvement in foreign portfolio investments. The rupee has also gained against the dollar indicating strong inflows through a variety of sources.
- After the union budget, there has been some slowdown in portfolio flows in the secondary markets. But the proposal to raise dollar funds by the government to part-finance its expenses is expected to increase dollar flows, which would require the central bank to purchase these dollars to release rupee funds. The government is working on a sovereign benchmark for external borrowing that will be finalised in September this year, after which there could be some pickup in dollar flows.
- The government has sought information from the Securities and Exchange Board of India about the origins of those foreign portfolio investors that use the trust structure and the assets that they manage, said a person familiar with the development. It also asked for data on the tax liability of each of the structures employed by FPIs — trusts, companies and limited liability partnerships.
- A large number of FPIs in India will be impacted as they are structured either as trusts or AoPs. In the meantime, the Asia Securities Industry and Financial Markets Association, an FPI lobby group, met senior Sebi officials to share their concerns on the budget proposal to increase the tax surcharge on the super-rich. As per data provided to the government, 40% of the FPIs use the trust structure, while 60% of them prefer to use the corporate structure.
Key Due Dates:
- 07-07-2019 – Deposit of TDS/TCS for the month of June 2019.
- 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one financial year for the specified and notified services.
- 10-07-2019 – GSTR 8 for E-Commerce Companies for the m/o June 2019.
- 10-07-2019 – Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019.
- 10-07-2019 – Issue of TDS Certificate for salary for the financial year 2018-19.
- 11-07-2019 – GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.
- 13-07-2019 – GSTR-6 for Input Service Distributor.
- 14-07-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o May’19.
- 15-07- 2019 – Quarterly statement of TCS for the quarter ending 30 June, 2019.
- 15-07-2019- ESI/PF Payment for m/o June 2019.
- 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received FDI or made FDI abroad for m/o June 2019.
- 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.
- 20-07-2019 – GSTR-3B for the m/o June 2019.
- 20-07-2019 – GSTR-5 for the m/o June 2019.
- 20-07-2019 – GSTR-5A for the m/o June 2019.
- 25-07-2019- EPF return filing for the month of June 2019.
- 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.
- 30-07-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in month of June’19.
- 31-07-19 – GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover upto Rs. 1.50/- Crore.
- 31-07- 2019 – Quarterly statement of TDS for the quarter ending 30 June, 2019.
- 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.
- 31-07-2019- Payment of Professional Tax and Shop and Establishments taxes.
- 31-07-2019- Form 67 Due date for claimimg Foreign Tax Credit,upload statement of Foreign income offered for tax for previous year 2018-19 and of Foreign tax deducted or paid on such incomes.
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