Is eliglible of slaex tax on electricty bill

[Guest]

Dear Sirs,

We are having a plant in Pondicherry and the electricity bill comes around ₹ 18 Lakh and the sales tax 5% also charged by the electricity department in the electricity bill. Can we take credit of this sales tax amount? Pl confirm and reference with applicable rule.

[YAGAY andSUN]

Please check the ITC provision in this regard. If electricity is used only for manufacturing of finished goods and it is part of your BOM then ITC may be availed. Also get clarification from the VAT Department on this aspect.

AI Summary

Input tax credit on electricity: eligibility depends on use for manufacturing and statutory ITC conditions; seek departmental clarification. Whether sales tax charged on an electricity bill is claimable as Input Tax Credit depends on statutory ITC provisions and whether the electricity is used for manufacturing taxable finished goods and forms part of the production inputs; taxpayers should confirm eligibility and documentation requirements with the VAT Department before claiming credit.