Case Law Details
In re M/s Tp Ajmer Distribution Limited Florence (AAR Rajasthan)
Also Read AAAR Ruling- No GST on Delayed electricity Payment charges: AAAR
(A) SUBMISSION OF APPLICANT
1. M/s TP Ajmer Distribution Limited (‘TPADL’ or ‘Applicant’ or ‘the Company*); having Goods and Services Tax (“GST’) Registration No. 08AAGCT2158P1ZR and is engaged in the business of distribution of electricity; has submitted that,
1.1 The Tata Power Company Limited (‘TPCL’) has signed a Distribution Franchisee Agreement (‘DFA’) with Ajmer Vidyut Vitran Nigam Limited (‘AVVNL’) to cater to the power requirements of customers in Ajmer, Rajasthan for a period of 20 years. To serve the aforesaid purpose, TPCL has formed a Special Purpose Vehicle (‘SPV’) called TPADL, which will be responsible for operating and maintaining the distribution network in Ajmer City. It will also be responsible for managing the billing and collections in the said areas.
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Sir,
At para 7.5, it is stated that delay payment charges of electricity bills is taxable as it forms part of taxable value in terms of Section 15(2)(d) of CGST Act. It is not understood how the said charges are taxable if electricity and the electricity distribution services are exempted.