Last updated: January 8th, 2020 3:58 AM

Tamil Nadu Electricity Tax

Under the Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003, the electricity tax is charged on consumption or sale of electricity in the state of Tamil Nadu. The tax is levied on the last supply of electricity to the consumer and the liability arises when the electricity is supplied. The supplier is responsible for payment of the tax and for all returns. Let us look in detail about the Tamil Nadu electricity tax in this article.

Tamil Nadu Tax on Consumption/Sale of Electricity Act, 2003

This Act has come into force on16.6.2003 following the existing Tamil Nadu Electricity Act 1962 and the Tamil Nadu Electricity Duty Act, 1939. According to the Act, 10 paise tax per unit is charged on the self-generated consumption of electrical energy and 5% tax is charged on the net charge of electricity that is sold by the Tamil Nadu Electricity Board or any other licensee.

Tax Exemptions

The below following types of consumers are exempted from the levy of the electricity tax.

• Railway Administration
• Government Bodies
• Any Local Authority

The electricity that has been sold by the Tamil Nadu Electricity Board or by other Licensees for the use of domestic and agriculture purpose.

Calculation of Electricity Tax

The monthly billing that is made by the licensee for the charges, including tax, the tax that is payable in respect of the sale of electricity at the period between the date of coming into the force of the Act and the date of first meter reading recorded would be calculated on the total sale for the period occurring between the readings immediately preceding and immediately regarding the enforcement of the Act as tabulated below:

S.No.	Cases	Tax Per cent
1.	If the term period first aforesaid is 8 days or more but is less than 16 days	25% of the tax that would have been payable on the total consumption for the period second aforesaid.
2.	If the term period of the first aforesaid is 16 days or more but is less than 24 days	50% of the tax that would have been payable on the total consumption for the period second aforesaid.
3.	If the term period first aforesaid is 24 days or more but is less than 32 days	75% of the tax that would have been payable on the total consumption for the period second aforesaid.
4.	If the term period first aforesaid is 32 days and above	The full amount of electricity tax that would have been payable on the whole consumption for the period second aforesaid.

  The bimonthly billing is made by the licensee for his energy charges, including tax, the tax that is payable in respect of the sale of electricity during the term period between the date of coming to force of the Act and the first-meter reading date that has been recorded thereafter would be calculated on the total sale for the term period occurring between the readings immediately preceding and directly following the enforcement of the Act as tabulated below:  

S.No.	Cases	Tax Per cent
1.	if the term period first aforesaid is 8 days or more but is less than 16 days	12.5 % of the tax, that would have been payable on the total consumption for the period second aforesaid
2.	if the term period first aforesaid is 16 days or more but is less than 24 days	25% of the tax that would have been payable on the total consumption for the period second aforesaid.
3.	if the term period first aforesaid is 24 days or more but is less than 32 days	37.5% of the tax, that would have been payable on the total consumption for the period second aforesaid.
4.	if the term period first aforesaid is 32 days or more but is less than 40 days	50% of the tax that would have been payable on the total consumption for the period second aforesaid.
5.	if the term period first aforesaid is 40 days or more but is less than 48 days	62.5% of the tax, that would have been payable on the total consumption for the period second aforesaid.
6.	if the term period first aforesaid is 48 days or more but is less than 56 days	75% of the tax that would have been payable on the total consumption for the period second aforesaid.
7.	if the term period first aforesaid is 56 days or more but is less than 64 days	87.5% of the tax, that would have been payable on the total consumption for the period second aforesaid.
8.	If the term period first aforesaid is 64 days and above.	The full amount of tax that has been payable on the total consumption for the period second aforesaid.

In case the licensee is unable to add the amount of tax in the bill immediately following the Act for want of time he would do so in the next bill and the tax amount would be rounded off to the nearest 10 paise. Procedure for Payment of Electricity Tax Follow the given steps for registering generators and payment of electricity tax Step 1: The applicant has to log in to the Single Window Portal. Step 2: In the case of a new user, click on the “Register” button to register as a new user. Step 3: After Registration, Verification page appears automatically, the applicant has to enter OTP received in Email or SMS. Step 4: Every Person other than licensee/State Government who has installed or proposes to install a generating plant that must apply for registration of the generator in Form-A1 to the concerned Electricity Tax Inspecting Officer regarding the post of Electrical Inspector along with the original remittance challan for Rs.200 paid to a Government treasury under this department head of account. Step 5: Certificate of Registration will be issued in Form-A2 Step 6: The tax rate is 10 paise per unit on the electricity consumed. Step 7: The monthly return in the Form-C2 must be submitted regularly with the original remittance challan for the tax amount that is calculated. Step 8: The rate of interest is 12% per annum for the belated payments.