Service Tax - Electricity Meter installed in consumers' premises and hire charges collected – Exempted - Clarifies Board
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.
CBEC clarifies that “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 (Notification No. dated 27.02.2010 and/ or dated 22.06.2010.)
CBEC Circular No. 131/13/2010 – ST., Dated: December 07, 2010