Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: cpt :: list of goods taxed at 4% :: form 3cd :: TDS
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

Advance tax payments may add to liquidity woes
September, 05th 2013

A strong demand for money to pay the second tranche of advance tax by September 15 may put further pressure on liquidity.

Given the pain on corporate balance sheets due to the sluggish economic growth, the tax outgo may be subdued, treasury executives said. Yet demand for additional funds from corporations would exert pressure on the already tight liquidity conditions. The tax outgo is pegged just over Rs 50,000 crore.

A senior State Bank of India official said liquidity would be under strain for a few days in the run-up to tax payment date. The cost of funds will be high this time due to steps taken by the Reserve Bank of India (RBI) to keep liquidity under tight leash.

Suspecting part of liquidity was being used to speculate in the rupee-dollar market, RBI began to put curb on bank borrowing through the overnight borrowing window to stem the rupee fall.

G Chokkalingam, managing director and chief investment officer with Centrum Wealth Management, said overall liquidity in the market was under pressure. As corporations seek funds from banks for tax payments, the liquidity could tighten further. Banks would borrow from the money market to arrange for funds, pushing up short-term money market rates further.

Bank borrowings from RBI – liquidity adjustment facility (LAF) and marginal standing facility (MSF) – have been on rise. The combined borrowing by banks was Rs 90,719 crore on September 2, 2013, according to RBI data.

The overnight rates are at present ruling around (10.25 per cent), a rate at which RBI is dispensing overnight money to banks under MSF.

A treasury head with a Mumbai-based public sector bank said while corporate demand would add to pressure on liquidity, some government bonds were maturing up to September 10. This should bring in fresh funds in the system, marginally improving the supply of money. Plus, the cash management bills to the extent of Rs 45,000 crore are being redeemed in the third week.

There is expectation that under the leadership of the new governor, RBI may unwind some of the liquidity squeeze steps to ease the pressure, bankers said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions