https://www.taxtmi.com/highlights?id=105870 Transfer of the right to use electricity distribution equipment can attract tax under Section 4(8) of the Andhra Pradesh Value Added Tax Act, 2005, without a transfer of ownership. Recovery of equipment costs or installation at a consumer's premises is not conclusive; the statutory framework and supply conditions must also be examined. Service line and development charges recover the value of goods used in activities incidental or ancillary to electricity supply. The transaction as a whole can transfer the right to use those goods for receiving electricity even where the licensee retains operational control and maintenance responsibility. The value recovered through the charges is then taxable at applicable rates. en-us Fri, 06 Nov 2026 09:17:37 +0530 Fri, 06 Nov 2026 09:17:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=105870 Transfer of the right to use electricity distribution equipment can attract tax under Section 4(8) of the Andhra Pradesh Value Added Tax Act, 2005, without a transfer of ownership. Recovery of equipment costs or installation at a consumer's premises is not conclusive; the statutory framework and supply conditions must also be examined. Service line and development charges recover the value of goods used in activities incidental or ancillary to electricity supply. The transaction as a whole can transfer the right to use those goods for receiving electricity even where the licensee retains operational control and maintenance responsibility. The value recovered through the charges is then taxable at applicable rates. Highlights VAT / Sales Tax Fri, 06 Nov 2026 09:17:37 +0530 https://www.taxtmi.com/highlights?id=105870