what is cenvat credit expain it
- 20 Answers
- 101194 Views
- Hindustan Unilever Limited, IBM, RBI, I also Faced
- E-Mail Answers
Answer Posted / ramkumar nair
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
| Is This Answer Correct ? | 108 Yes | 19 No |
Post New Answer View All Answers
Dear Sir, Regarding for WCT, IF FORM DVAT-43 MADE FOR DELHI STATE.So Is there any Form availabe for Haryana State. Would request you to please let know Answer in Yes or No or which form is available for HR State If do you have any kind of list for same please have suggested me.
how i get h form
What is Form 12A & Form-H and where is applicable.
how many sale tax charged on the billing for central dealer by uttar pradesh dealer at furniture items ? & how many sale tax charged for u.p. dealer by up dealer ?
About vat, service tax, tds, cenvat
How to reconcile a Vendor who is a supplier as well as a Contractor?
WCT charged on firm or on proprietor?
WHAT IS MEANT BY CST? DO THE SUPPLIER CLAIM CST 2% FROM THE PURCHASER? WHAT ARE ALL THE RULES TO BE FOLLOW WHILE THE BUYER PURCHASE A 'C'FORM FROM THE CTO?
what is the rule of TDS Deduction for Pvt Ltd Company ??? And What rule of not TDS Deduct for PVT LTD company ???
if am registered dealer & i am using road permit, i have to pay entry tax, which goods, I am receving in jammu
Define the term "Manufacturer"as introduced in finance act2010.
what is the difference between tds tax code and tds tax type in sap fi
ER-5 & ER- 7 ER -4 related all information 1) What Fill The ER-5 & ER- 7 ER -4 2) What Infomation Fill In the return
what is the circle of tds and its rate chart
what is the procedure for Excisable goods transfer from Head office to branch and vice versa (the branch is located in the same state) also if the branch is located in other states. How will it affect the VAT returns
