tax on electricity
1.whether the distributing cos are paying tax while purchasing electricity from the generating company.
2.are the distributing cos. enjoying any input credit
3.should the tax be removed or reduced for even affordable citizens beyond a certain income level(f.e mr mukesh ambani)
if the distributing cos. are paying tax for their purchase and if there is input credit,then the modification should be made both for purchase and sale,failing which there will be imbalance.
however if there is purchase tax and no input credit,then reduction/or waiver of tax should be done for consumers upto a certain income level/consumption level.in fact 3 stages can be adopted:
1.nil tax for consumption to a certain level.
2.minimum tax for consumption beyond first stage and upto certain level.
3.no change above level 2. more