Excise duty and State level sales tax on Power generation

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Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2010 Dear Sir,

Whether power generation liable for excise duty? If it is exempted, is it compulsory to get excise registration under central excise act? Please clarify my doubt.

Whether State Level Sales Tax applicable on power generated and sold to power grid?

Our company started construction of captive power plant, it is Thermal Power Plant.

Requesting you all please clarify my doubt with relevant notification or sec. numbers.

Thanking you,
Swamy K.

Rajesh Kumar

Rajesh Kumar (Expert)

30 November 2010 Excise duty is exempted on electricity and no registration is required.
Sales tax and other state tax depends on the state you are in. Further, if it is a captive power plant, there is no sale of electricity.

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2010 Thank U Rajesh Kumar sir,

Ours is Captive Power Plant, it is 60 m.w power plant, our company need 40 m.w for its captive consumption, the excess capacity 20 m.w may be transferred to private or govt grid. then it will be a sale of power.

AP commercial taxes, exempted power/electricity from sales tax.

Thank you for your valuable reply.
Swamy

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2011 Again and again droughts and queries a raising by our people many, Please can any one forward specific exemption notification for thermal power generation in CENTRAL EXCISE ACT, 1944.

Please send a clear notification also if any one know about that....

It is urgent sir..

Swamy.K

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