What is a CENVAT Credit? Can anybody tell me from where I can learn more about Excise and CENVAT Credit.
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 18 July 2014
Pls go through the Article.....to understand Cenvat cedit from basics
/articles/cenvat-credit-rules-from-scratch--18668.asp#.U8j92nKSxA0
PRADEEP REDDY
(CHARTERED ACCOUNTANT)
(664 Points)
Replied 18 July 2014
Dear Bhavesh,
In india excise duty paid while procuring any input goods(raw material for manufacture of a good) can be off set against the excise duty liability on finally manufactured good.Such off setting of excise duty paid on input goods against the excise duty liability on finally manufactured good is called CENVAT CREDIT.
Eg: say excise duty on input material is Rs.100 and excise duty on finally manufactured good is Rs.150 then the manfacturer has to pay an excise duty of Rs.50 (150-100).here Rs.100 is cenvat credit
In india excise duty paid can be set off against excise duty and service tax and vice versa.
Similar is the case with service tax. for more information click on the following link
/articles/cenvat-credit-rules-from-scratch--18668.asp#.U8kAeSqf444
CAclubindia
