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cenvat credit

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21 August 2010 what is cenvat credit??
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CA PRAMOD SARAOGI

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CA PRAMOD SARAOGI (Expert)
21 August 2010 Cenvat Credit is the scheme which allows the credit of Excise Duty paid on Inputs and Capital Goods , Additional Duty of Customs paid on Inputs and Capital goods and Service Tax paid on Input Services which is to be utilised for payment of Excise Duty on Final products or Service Tax on Output Service.
In other words, above duties paid on Inputs and Input Services and capital Goods are allowed to be adjusted with the Duty payable on Ourput Goods and services.
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