SERVICE TAX ON ELECTRICITY METER RENT
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 July 2010
My company is in the business of distribution of Electricity to all category of consumers through Energy recording Meter. The consumers is billed by our company on energy charges so recorded in the energy meter so installed by the company, Meter Rent,other alied services like fuse call etc if any as per the prescribed rate of Regulatory commission.
Now Service Tax authority claimed to my company as service Tax on Meter rent collected from consumers,other alied services like fuse call etc so collected from consumers for the last five years.
Please advice whether the claim of service tax authority is correct. If correct than at what section. If not correct than in what section & any case law in this context.
This is very very very urgent,please advice for proper reply.
The full fact is that Company realised Electricity Meter Rent from its consumers through bill along with the cost of energy so consumed. The meter rent so collected from consumer is as per rate fixed by the regulatory commission. The meter rent is part of ARR( Actual Revenue Requirment), but normally company treat it as a non-regulatory income.
Electricity Meters are the assets of the company.Company did not collect/charge any capital cost on this assets from consumers, but to realised rent for use of the same.
Company did not collect any service Tax from consumers for sale of electricity & Meter Rent.
Please advice whether Meter rent is under perview of service tax?.
Now Service Tax authority claimed to my company as service Tax on Meter rent collected from consumers,other alied services like fuse call etc so collected from consumers for the last five years.
Please advice whether the claim of service tax authority is correct. If correct than at what section. If not correct than in what section & any case law in this context.
This is very very very urgent,please advice for proper reply.
The full fact is that Company realised Electricity Meter Rent from its consumers through bill along with the cost of energy so consumed. The meter rent so collected from consumer is as per rate fixed by the regulatory commission. The meter rent is part of ARR( Actual Revenue Requirment), but normally company treat it as a non-regulatory income.
Electricity Meters are the assets of the company.Company did not collect/charge any capital cost on this assets from consumers, but to realised rent for use of the same.
Company did not collect any service Tax from consumers for sale of electricity & Meter Rent.
Please advice whether Meter rent is under perview of service tax?.
Shyam Lal Naik
(Expert)
09 July 2010
It is difficult to answer to such queries in the absence of full facts and examination.
However, it appears that the department is trying to tax you under the category of "Supply of Tangible Goods for Use".
You need to seek expert opinion on this issue.
However, it appears that the department is trying to tax you under the category of "Supply of Tangible Goods for Use".
You need to seek expert opinion on this issue.
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 July 2010
The full fact is that Company realised Electricity Meter Rent from its consumers through bill along with the cost of energy so consumed. The meter rent so collected from consumer is as per rate fixed by the regulatory commission. The meter rent is part of ARR( Actual Revenue Requirment), but normally company treat it as a non-regulatory income.
Electricity Meters are the assets of the company.Company did not collect/charge any capital cost on this assets from consumers, but to realised rent for use of the same.
Company did not collect any service Tax from consumers for sale of electricity & Meter Rent.
Please advice whether Meter rent is under perview of service tax?.
Electricity Meters are the assets of the company.Company did not collect/charge any capital cost on this assets from consumers, but to realised rent for use of the same.
Company did not collect any service Tax from consumers for sale of electricity & Meter Rent.
Please advice whether Meter rent is under perview of service tax?.
Dhirajlal Rambhia
(Expert)
31 July 2023
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
