Transmission or distribution of electricity Service (Covered in Negative List for Service Tax Purpose)

1.  What is the meaning of electricity transmission or distribution utility?

An ‘electricity transmission or distribution utility’ has also been defined in section 65B of the act. It includes the following –

  •  the Central Electricity Authority

  •  a State Electricity Board

  •  the Central Transmission Utility (CTU)

  •  a State Transmission Utility (STU) notified under the Electricity Act, 2003 (36 of 2003)

  •  a distribution or transmission licensee licensed under the said Act

  •  any other entity entrusted with such function by the Central or State Government

2.  If charges are collected by a developer or a housing society for distribution of electricity within a residential complex then are such services covered under Negative List?

No. The developer or the housing society would be covered under this entry only if it is entrusted with such function by the Central or a State government or if it is, for such distribution, a distribution licensee licensed under the Electricity Act, 2003.

3.  If the services provided by way installation of gensets or similar equipment by private contractors for distribution of electricity covered by Negative List?

No. the entry does not cover services provided by private contractors. Moreover the services provided are not by way of transmission or distribution of electricity.

More Under Service Tax


  1. rajender singh says:

    dear sir, is the service tax is applicable on the maintainence of transmission lines of central transmission and distribution utilities sub-contractor

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

January 2021