Electricity Tax in Tamil Nadu - Letter No. 31922/CEIG/A3/2023

<p>The Electricity Act, particularly the Tamil Nadu Electricity Supply Code of 2003. This code specifies regulations regarding the imposition of taxes on the generation, transmission, and sale of electricity within Tamil Nadu.</p><p>The act referred to is the Electricity Act (Amendment) Bill 2016 and the Tamil Nadu Electricity Supply Code of 2003. Specifically, it points to Schedule VII, entry 53, of the Tamil Nadu Electricity Supply Code, which governs the imposition of taxes on electricity generation, transmission, and sale within the state.</p><p>The final statements highlight that according to the mentioned provisions, there are no taxes imposed on electricity generation within Tamil Nadu. However, the state has the authority to levy taxes on the consumption or sale of electricity if it crosses state boundaries or falls under commercial trade provisions. The code specifies rates for taxation, such as 10 paisa per unit for domestic consumption and 5% of transmission charges for electricity sales. Self-generated electricity for personal use does not attract taxes.</p><p>This information is valuable for customers as it clarifies the taxation rules regarding electricity consumption, sale, and transmission within Tamil Nadu. Customers can understand that while there are no taxes imposed on electricity generated for personal use, there are provisions for taxes on electricity sold, based on specified rates and boundaries. Understanding these regulations helps customers anticipate and comprehend the taxation implications related to their electricity consumption and sales within the state.</p>

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