Southern States - Tamil Nadu   

New bill on electricity tax introduced, amid protest

By Our Special Correspondent

Chennai May 8. A new Bill to rationalise existing laws on levying tax on consumption or sale of electricity was introduced today by the Electricity Minister, Nainar Nagenthran, in the Assembly, amid protests from most of the Opposition parties.

The Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003 provides for levy of a minimum tax of 5 per cent and a maximum of 10 per cent on the net charge for energy sold by all licensees including the Electricity Board.

For captive power plants, the levy will be a minimum of 10 paise and a maximum of 20 paise per unit consumed for their own use.

However, at present, the levy will continue to be 5 per cent for sale of power and 10 paise a unit for own consumption by captive power plants.

The power supplied for agricultural pumpsets and huts will be exempted from the tax.

Inspections

The Government will appoint electricity tax inspecting officers to examine the books of accounts of licensee institutions. According to Section 14 of the legislation, in case a company commits an offence, those in-charge of and are responsible to the company, as well as the firm, will be liable to punishment. Any director, manager, secretary or other officers shall also be punished if the offence has been committed with their consent or connivance or if any neglect is attributed to them.

And, the penalty for failing to keep books of account or to submit returns, and intentionally obstructing an inspecting officer from performing his duty or contravening any rule under the law may extend to Rs. 10,000.

However, Section 10 provides for filing an appeal to the Government against any order of assessment of electricity tax within 60 days or a further period as may be allowed by the Government for reasons shown to its satisfaction.

Any electricity tax due shall be deemed arrears and thereupon interest at the rate prescribed by the Government is payable on such levy.

At the introductory stage of the Bill itself, the Congress, the Left parties and the PMK, recorded their protest.

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