Page 16 - Banking Finance November 2020
P. 16
ROUNDUP
which was under moratorium declined of Indian refined gold shows the trust economy as well as upcoming festive
gradually during April to August 2020, reposed by buyers and sellers on BSE- season, it's not surprising that collec-
as the moratorium provided by the led initiatives. tions in October exceeded 1 lakh crore.
Reserve Bank of India (RBI) under the This will facilitate increased participa-
'Covid-19 Regulatory Package' came to One of the reasons for the higher num-
tion and widen the array of acceptable ber of returns could be the fact that
an end. Overall, about 45 originators gold provided by members for delivery
undertook securitisation in Q2 as the last date for claiming input credit
of Bullion on commodity derivatives for 2019-20 was September 30 and a
against only 18 originators seen in Q1.
segment of BSE, he said. lot of companies would have carried
Refined gold delivered for The commodity derivatives segment of out a yearly reconciliation and asked
BSE registered the highest turnover of their vendors to file returns or report
first time in India on BSE Rs. 5,010 crore on July 29. missing transactions," said Jain.
platform Last year, festival sales were bunched
BSE has become the first domestic ex- GST collection in October up in October due to Dussehra and
change to complete deliveries of gold tops Rs. 1 lakh crore Diwali. This time, Dussehra sales took
under BSE-BIS India Good Delivery place in October, and the numbers will
Standard on its commodity platform. For the first time since February 20, GST be clearer next month. Diwali sales are
collections topped Rs 1 lakh crore in
The BSE has executed gold delivery expected to be captured in the Decem-
worth Rs. 1.5 crore in the 'Options in October, indicating that economic ac- ber numbers.
Goods' framework. The gold delivered tivity is headed to pre-Covid-19 levels. The government sees the numbers as
in the contracts were domestically re- The mop up last month was 10.2% a pointer towards growth slowly com-
fined from recylced gold. Incidentally, higher at Rs 1,05,155 crore, making it ing back and strong signs of recovery
this is the fifth consecutive month of the fastest rise since the 15.6% growth in the months ahead.
deliveries at the exchange designated recorded in March 2019, latest data
vault in Ahmedabad, Gujarat. released by the finance ministry Vivax se Viswas scheme: IT
The refined gold delivered on the ex- showed. dept scraps 15-day rider
change platform was produced by "Collections which are higher by nearly
Augmont Enterprises and Parker Pre- Rs 10,000 crore compared to the same for tax payment
cious Metals LLP. In addition to these period in 2019 indicate the definitive The government extended for the
refineries, MD Overseas and Sovereign revival of consumption and festival third time the deadline for making
Metals are also empanelled by BSE to
spends across the economy," said M S payment under the direct tax dispute
deliver serial-numbered gold bars on Mani, senior director at consulting firm settlement scheme 'Vivad se Vishwas'
the exchange platform. Earlier, BSE
Deloitte India. by three months to March 31, 2021.
used to accept only serial-numbered
gold bars approved by the London Bul- "Given the festivities, collections in As per a CBDT notification, declaration
lion Market Association for the settle- November could also be robust," said under the Vivad se Vishwas Scheme
ment of gold contracts exchanged on Pratik Jain, who leads the indirect tax shall be required to be furnished latest
the commodity derivatives segment of practice at consulting firm PwC India. by December 31, 2020.
the exchange. In October 2019, collections had "In order to provide further relief to
The exchange also executed deliveries dropped by over 5% to Rs 95,380 crore. the taxpayers desirous of settling dis-
of silver-based on LBMA standards un- This time, domestic sales resulted in an putes under Vivad se Vishwas Scheme,
der the 'Options in Goods' segment, at 11% rise in collections, while those due the government today further ex-
the exchange designated vault in to imports were estimated at 9%. tended the date for making payment
Ahmedabad, Gujarat. "Given the surge in number of returns without additional amount from De-
Sameer Patil, Chief Business Officer, filed and the fact that there is clear cember 31, 2020 to March 31, 2021,"
BSE said the deliveries and acceptance uptick in demand due to revival of the an official statement said. T
16 | 2020 | NOVEMBER | BANKING FINANCE