25 June 2009
CENVAT stand for central excise value added tax. Manufacturer are eligible to get credit of duty paid on inpur and capital goods used for manufactuirng activity subject to terms and condistions stipulated in excise act and rules
25 June 2009
Cenvat (Central Value Added Tax).....It is a Concept of taxation which helps in avoiding the cascading effect of taxes. Eg. Whenever a manufacturer buys goods and pays taxes he is given a credit of the taxes and while selling the goods he is allowed to take the credit of the taxes which he has paid, and he is asked to pay the net difference only avoiding the cascading effect!!!
CAclubindia
