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    Dec 11, 2010

    SERVICE TAX ON ELECTRICITY METER INSTALLED IN CONSUMER PREMISES

    Circular No. 131/ 13/ 2010 – ST
    F.No.356/13/2010-TRU
    Government of India
    Ministry of Finance
    Department of Revenue
    Tax Research Unit
    North Block, New Delhi
    7th December 2010
    To
                Chief Commissioners of Central Excise and Service Tax (All),
                Director General (Service Tax),
                Director General (Central Excise Intelligence),        
                Director General (Audit),
                Commissioners of Service Tax (All),
                Commissioners of Central Excise and Service Tax (All).

    Madam/Sir,
               

    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

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