What is a CENVAt ????
This query is : Resolved
13 June 2010
pls tell me what is CENVAT and give a simple example to convince the the answer....
13 June 2010
CENVAT is central value added tax. I guess you want to know about CENVAT credit which is basically getting credit on output vat which you are required to pay with cenvat(excise, customs, service tax) you have already paid on buying/ availing input goods/services.
Shyam Lal Naik
(Expert)
14 June 2010
The query is posted under the category of VAT.
In fact VAT and CENVAT are subject of two different law. CENVAT is part of Central Excise/Service Tax.
A manufacturer of exciseble goods/Provider of taxable service is allowed to take credit of Excise Duty/Service Tax paid on inputs/capital goods/input services. This credit is known as CENVAT. The Cenvat so taken is permitted towards payment of Central Excise Duty on manufacture and / or Service tax on Output Service.
In fact VAT and CENVAT are subject of two different law. CENVAT is part of Central Excise/Service Tax.
A manufacturer of exciseble goods/Provider of taxable service is allowed to take credit of Excise Duty/Service Tax paid on inputs/capital goods/input services. This credit is known as CENVAT. The Cenvat so taken is permitted towards payment of Central Excise Duty on manufacture and / or Service tax on Output Service.
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