TaxTMI 
TaxTMI 
Service tax / Sales tax on sale of Electricity
X X X X Extracts X X X X
X X X X Extracts X X X X
....ervice tax / Sales tax on sale of Electricity<br> Query (Issue) Started By: - RAM NAUDIYAL Dated:- 10-11-2012 Last Reply Date:- 17-11-2012 Service Tax<br>Got 7 Replies<br>Service Tax<br>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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sales tax liability. Thanks Reply By Seetharaman K C: The Reply: Transmission or Distribution of Electricity is covered under the negative list, hence no service tax is payable Reply By Pradeep Khatri: The Reply: Since in VAT Laws, electricity is considered as goods, therefore, on the mark-up, there may be liability of VAT. Reply By RAM NAUDIYAL: The Reply: Can any Manufacturing company pur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chase electricity and sale surplus electricity. I have doubt about it. Reply By Pradeep Khatri: The Reply: Yes sir, Electricity Act, 2003 has provisions in this regard. Reply By JAMES PG: The Reply: It appears that there are restrictions on sale of electricty by one company to another company Reply By Seetharaman K C: The Reply: There are specific provisions in the Electricity Act and also w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....here power can be purchased from any distributor by another distributor of electricity . Presently the SEB's are the large distributors where again their operations have been sgregated into Generation, Transmission and Dirstribution with different sections sometimes companies taking care of different divisions. Also there are cases where other smaller distributors like for example, SEZ's Port Trus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts, Tecnology parks are also given licences for distribution. Most of these small distributors purchase power from larger distributors viz SEB's or Reliance Power or Tata Power through the Grid for which wheeling charges are charged for transportation of electricity. All these formalities are regulated by the Electricity Regulatory Commission of the respective state and therefore this is the Autho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rity which needs to be approached for the licences. Reply By SANJEEV SOMANI: The Reply: Dear Sir, As per my knowledge one of the High Court has confirmed levy of Sales Tax on sale of Electricity valid.<br> Discussion Forum - Knowledge Sharing ....