Answer / umesh rajput

<b>CENVAT</b>
Before I am going to explain what is cenvat, you have to under stand the Indian tax Central Excise Duty (BED).  It is called as basic excise duty.  Every manufacturer is liable to pay the excise duty in various kinds namely Basic Excise Duty, Special Excise Duty, Additional Excise Duty etc., 
 
Just think over a product which is reached to a end user, how many manufacturing activities are done.  So to reduce the tax burden of the end user, the Govt. of India introduce the MODVAT scheme which is now called CENVAT scheme.  
 
Based on this, if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice.  At the time of selling his manufactured goods, he is liable to pay the excise duty.  He can adjust the credit which he has taken into his book and pay the rest. 
 
For example:
CENVAT availed at the time purchased various goods     Rs.20,000    (EXcise duty alone)
CENVAT payable for his product at the time sales           Rs.25,000
He will pay only Rs.5000 through cash deposit in PLA.
This customizing are in SAP CIN Module.  If you are having the CIN CD, go through.  
 
<b>RG23D:</b>
 
It is register for depot transcations.
 

Answer / h.r. sreepada bhagi

Cenvat Credit refers to availing (taking) credit of CENVAT
Charged by a manufacturer, or dealer in his sales invoice by
the purchaser of goods.

The purchaser of goods is entitled to adjust the Cenvat in
his purchase bills against the Cenvat charged in his Sales
Invoices as per the Provisions of Central Excise Act, in India.

Please refer both Central Excise & Service Tax Acts for more
information ; Availing & utilisation of Cenvat credits as
these are related.

Answer / prasad

CENVAT credit means excise duty and service tax paid on inputs(like raw material,fuel etc.)for manufacturing of goods is deducted from the excise duty payable on the goods manufactured..

Answer / vijay

The Cenvat scheme is principally based on system of
granting credit of duty paid on inputs and input services.
A manufacturer or service provider has to pay excise duty
and service tax as per normal procedure on the basis
of ‘Assessable Value’ (which is mainly based on selling
price). However, he gets credit of duty paid on inputs and
service tax paid on input services. Thus, he actually pays
amount equal to duty/service tax as shown in invoice less
the Cenvat credit available to him.

Answer / aditya kumar saw

Cenvat credit is a scheme where the manufactures or the
output services provides are allowed a set off of the taxes
paid on the inputs or the inputs services that are used
while Manufacturing the final products or providing the
output services

Answer / prahallad nayak

1.Cenvat Credit refers to taking credit of CENVAT
Charged by a manufacturer, or dealer in his sales invoice by
the purchaser of goods.

2.Because if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest.

Answer / khushi sharma

Cenvat credit is a scheme where the manufacturers or the output service providers are allowed a set off the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service.

Answer / r.sarvanan

Cenvat Credit is a scheme where the manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service.

Answer / saroja.m

cenvat credit as well as service tax is paid on the products
manufactured and services provided. the tax paid on inputs,
raw materials, capital goods and input services- utilized in
manufacture of final products of a manufacturer and services
provided are allowed to be deducted/ allowed as credit
against the central excise/ service tax liability of a
manufacturer/ service provided. the scheme was introduced
for avoiding multi level taxation on same product or
service, also called cascading effect.
As regards exports, central excise duty is nil. duty
drawback is paid by govt. to exporters.

Answer / bangalore

In Simple Words Cenvat Credit Means Input Excise duty for Purchases

stock taken as drawing what should be the accounting entry

7 Answers  

Why did you select accounting as your profession?

0 Answers  

2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: &#61485;fixed 42,000 &#61485;variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: &#61485;fixed 36,000 &#61485;varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.

0 Answers  

what is accrual concept?

7 Answers   Capital IQ, Genpact, TCS,

where does petty cash to cash entry go in tally

1 Answers   ABC,

DIFFERNCE BETWEEN RESERVE AND FUND?

2 Answers   Genpact,

if cheque bounced what we received from customers and payed to bank what entry should we create in single entry system

0 Answers  

what is forex management?

2 Answers  

Please expain difference of service tax and entry tax and rates also in fy 2010-11 and how calculate these taxes

2 Answers  

what is the difference between TDS & TCS? Note:- Plz don't tell the ful form of tds & tcs

3 Answers   Jaguar, National Granites,

which expenses are covered under indirect expenses

4 Answers  

Let me know the liability positions of Partners

0 Answers