Is eliglible of slaex tax on electricty bill, VAT + CST

[PETER SUGUMAR]

Dear Sirs,

We are having a plant in Pondicherry and the electricity bill comes around ₹ 18 Lakh and the sales tax 5% also charged by the electricity department in the electricity bill. Can we take credit of this sales tax amount? Pl confirm and reference with applicable rule.

Posts / Replies

[YAGAY AND SUN]

Please check the ITC provision in this regard. If electricity is used only for manufacturing of finished goods and it is part of your BOM then ITC may be availed. Also get clarification from the VAT Department on this aspect.