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

Tax Collected at Source debate: applicability on electricity bills split between GST TDS rules and Income Tax TCS provisions.
TNEB recovered an amount labelled as tax collected at source on an electricity bill. Section 52 GST for e-commerce operators is inapplicable; Section 51 GST TDS applies only where a specified government or notified deductor deducts tax on payments to suppliers. Transmission or distribution of electricity by a distribution utility is nil-rated under GST, limiting GST-based TCS/TDS. The Income Tax Section 206C(1H) TCS on receipts for sale of goods was cited as an alternative basis. The critical legal question is whether billed components are sale of goods or supply of services and which statutory regime correctly authorises the recovery; taxpayers are advised to contest with the utility and consult an income-tax auditor.