Regarding electricity meter installed in consumers’ premises and hire charges collected – whether covered under exemption for transmission and distribution of electricity

Circular No. 131/13/ 2010 – ST, 7th December 2010

Subject: – Electricity meter installed in consumers’ premises and hire charges collected – whether covered under exemption for transmission and distribution of electricity – reg.

A doubt has been raised whether renting of electricity meter by a service provider rendering the service of transmission or distribution of electricity,  is covered by  the exemption available under  Notification No. 11/2010-ST dated 27.02.2010 and/ or 32/2010-ST dated 22.06.2010.

2.         The matter has been examined.  It is a general practice among electricity  transmission(TRANSCO) / distribution companies (DISCOM) to install electricity meters at the premises of the consumers, to measure the amount of electricity consumed by them  and  ‘hire charges’ are collected periodically.  Supply of electricity meters for hire to the consumers being an essential activity having direct and close nexus with   transmission and distribution of electricity, the same is covered by the exemption for transmission and distribution of electricity, extended under the relevant notifications.

3.         Trade Notice/Public Notice may be issued to the field formations accordingly.

4.         Please acknowledge the receipt of this circular.

Hindi version to follow.

(J. M. Kennedy)

Director, TRU

Tel: 011-23092634

More Under Service Tax

One Comment

  1. jyoti says:

    sir i have a doubt, pls clarify…
    whether fee collected from consumers for 1) new connection 2) dismantling of connection 3)complaint registration is taxable under Service Tax.
    If yes, then under which Section of Service Tax.

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