Page 18 - Banking Finance August 2021

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cable to businesses with turnover of toys", Prime Minister Narendra Reliance to invest Rs.
over Rs. 10 crore. Modisaid about 80 per cent of the toys 75,000 crore in new energy
Such businesses while making any pay- were being imported by Indiawith
ments for purchase of goods exceed- crores of rupees going abroad and as- biz
serted that it was very important to
ing Rs. 50 lakh in a financial year to a Diversified business conglomerate Re-
change this situation.
resident would be required to deduct liance Industries Ltd (RIL) announced
a 0.1 per cent TDS. Noting that India's share is only about the company would invest Rs 75,000
However, this provision would not be 1.5 billion dollars (over Rs 11,000 crore in new energy business over the
applicable on share or commodity crore) in the global toy market of ap- next three years.
transactions done through stock ex- proximately 100 billion dollars (Rs. 7.5 "Our overall initial investment from our
changes, the Central Board of Direct lakh crore), Modi pitched for improv- own internal resources in the new en-
Taxes (CBDT) has said. ing the country's standing in what he ergy business will be Rs 75,000 (over
called 'Toyconomy' or the economic
The tax department said it had re- aspects of the toys and gaming indus- $10 billion) crore in 3 years. We will
ceived representations saying that try. invest Rs 15,000 crore in value chain,
there are practical difficulties in imple- partnerships and future technologies,
menting the provisions of Tax Deduc- Prime Minister Modi made the re- including upstream and downstream
tion at Source (TDS) contained in Sec- marks after interacting with partici- industries," RIL chairman & managing
tion 194Q of the I-T Act in case of pants of Toycathon-2021 via video director Mukesh Ambani said while
transaction via certain exchanges and conferencing. addressing the annual general meet-
clearing corporations as sometime in Toycathon-2021 was jointly launched ing.
these transactions there is no one to by the Ministry of Education, Ministry Ambani said Yasir Al-Rumayyan, chair-
one contract between the buyers and of Women and Child Development, man of Saudi Aramco and the gover-
the sellers. Ministry of Micro, Small & Medium nor of the Public Investment Fund, will
"In order to remove such difficulties, it Enterprises, Department for Promo- join the board of RIL as an independent
is provided that the provisions of sec- tion of Industry and Internal Trade director. "I expect our partnership to
tion 194Q of the Act shall not be appli- (DPIIT), Textile Ministry, Information be formalised in an expeditious man-
cable in relation to transactions in se- and Broadcasting Ministry and All In- ner during this year, after obtaining
curities and commodities which are dia Council for Technical Education required regulatory clearances," he
traded through recognised stock ex- (AICTE) on January 5, 2021 to crowd- said on formalising the much-awaited
changes or cleared and settled by the source innovative toys and games tie-up with Aramco.
recognised clearing corporation …," ideas. Divulging details about his new energy
the CBDT said in its guidelines dated "We import around 80 per cent of our plans, he said, "Reliance will establish
June 30. toys from abroad. Which means crores and enable at least 100 GW of solar
Section 194Q relating to TDS deduction of rupees of the country are going energy by 2030. A significant part of
by businesses was introduced in the abroad on them. It is very important this will come from rooftop solar and
2021-22 Budget and has come into to change this situation," Modi said. decentralised solar installations in vil-
effect beginning July 1, 2021. He underlined that beyond numbers, lages. These will bring enormous ben-
The CBDT has also clarified that only the toy sector has the capacity to bring efits and prosperity to rural India."
those entities having turnover from the progress and growth to the neediest Solar energy is available only during the
business of more than Rs. 10 crores in segments of society. day, while power is needed round the
clock. "Therefore, storage is an impor-
the preceding financial year would be Toy sector has its own small-scale in-
required to deduct TDS at the time of dustry, artisans comprising rural popu- tant piece of the puzzle to solve. For
purchase of goods over Rs. 50 lakh. lation, Dalits, poor people and tribal this, we will launch our second initia-
tive - an Advanced Energy Storage
population, he noted and also talked
Vocal for local toys: PM about the contribution of women in Giga Factory," Ambani said.
Calling on people to be "vocal for local the sector. "We are exploring new and advanced

18 | 2021 | AUGUST | BANKING FINANCE