TCS CHARGED IN TNEB Bills in Tamil Nadu -

[venkataraman swaminathan]

Dear Sir

Good Morning

We received Electricity Bill from TNEB ( Tamil Nadu Electricity Board ) .

We are HT service user for Factory operations. When we verified the TNEB Bill

TNEB charged TCS amount & there is no workings in that bill. (TCS ₹ 453/--)

Total EB Bill ₹ 3.09 lacs

In this connection , is it mandatory / requirement to charge TCS By TNEB

& there is no sale etc.. They are charging EB charges and Meter rent charges & Wheeling charges. ( for Rent they are charging GST as service head)

Request guidance on this .

Thanks

V swaminathan

AI Summary

Debate Over TNEB's TCS Charges: Does Section 206C(1H) of Income Tax Act Apply to Electricity Bills? A user raised a query about the Tamil Nadu Electricity Board (TNEB) charging a Tax Collected at Source (TCS) amount on their electricity bill without detailed workings. The bill totaled 3.09 lakhs with a TCS of 453. One response clarified that TNEB, not being an electronic commerce operator, should not apply TCS under Section 52 of the CGST Act, 2017. Another response mentioned Section 206C(1H) of the Income Tax Act, which allows TCS on amounts exceeding 50 lakhs annually. Opinions varied on whether TCS applies to electricity, considered a good, or services like meter rent. Further consultation with a tax auditor was advised.