ELECTRICITY TAX CLAIMED BY STATE ELECTRICITY BOARD

[Ramachandran Chandru]

Whether Industries covered under EOU scheme are eligible for exemption or refund of electricity tax claimed by state electricity boards for supplying electricity under commercial category. It is also to be ascertained whether electricity duty is different from tax. .

[DR.MARIAPPAN GOVINDARAJAN]

Electricity duty, in my view, is different from tax.

[YAGAY and SUN]

Generally, States do offer certain incentive schemes to the Manufacturer/Traders for promoting investment in that particular State. These schemes are called Package Incentive Schemes and under these schemes State do exempt Electricity Duty on certain investment criterion and fulfillment of certain condition as imposed by State Industrial Promotion Councils.

Please check the status in your State Tamil Nadu.

[Ganeshan Kalyani]

Yes there are schemes like electricity duty refund under industrial promotion scheme in a state. I guess this concept would be done away under GST.

AI Summary

Electricity duty exemption: eligibility and refund for export-oriented units may depend on state package schemes and criteria.
Whether EOUs qualify for exemption or refund of electricity duty charged by State Electricity Boards hinges on state package incentive schemes: electricity duty is distinct from tax, and relief (exemption or refund) is granted under state industrial promotion conditions and administrative criteria; claimants should verify their state scheme, and the availability of such relief may be affected by the national indirect tax regime.