TaxTMI 
TaxTMI 
Dear Expert,
We are registered Manufacturer and Service Receiver. We have purchased electricity more then consumption. Can we sale excess electrity to another company. If yes then what will be the service tax and sales tax liability.
Thanks
Service tax / Sales tax on sale of Electricity
10 Nov 2012 
7 Replies 
8430 Views Asked by
Sale of electricity: surplus supply may attract sales tax and VAT while transmission/distribution services remain outside service tax.
Transmission or distribution of electricity is on the negative list and not subject to service tax, but the resale of electricity is treated as sale of goods and may attract VAT or sales tax on the markup; licensing and distribution arrangements for resale are governed by the Electricity Act, 2003 and state electricity regulatory commissions. (AI Summary)
Transmission or distribution of electricity is on the negative list and not subject to service tax, but the resale of electricity is treated as sale of goods and may attract VAT or sales tax on the markup; licensing and distribution arrangements for resale are governed by the Electricity Act, 2003 and state electricity regulatory commissions. (AI Summary)