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DIFF. BTWEEN MODVAT & CENVAT

Adv. S Sharma (Lawyer) (574 Points)

12 December 2007

HI GUYS

PLZ TELL ME WHAT IS THE DIFFERENCE BETWEEN MODVAT & CENVAT CREDIT. FOR THE PURPOSE of clarifying this plz send me the link or book or rules from where i can read /understand this ?

thx

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27 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 12 December 2007

Cenvat is the new name for Modvat.

Pritam (CA) (95 Points)
Replied 14 December 2007

It stands for Modified Value Added Tax. Cenvat has evolved from Modvat.One can say, If Modvat was boy then Cenvat is man. Under Modvat credit of duty paid on Capital Goods was not available.

(Guest)

Modavt and Cenvat is like Bombay and Mumbai name changed

shyam kishor porwal (Chartered Accountant) (183 Points)
Replied 21 December 2007

cenvat is the new name of modvat including credit allowed on capital goods.

Ramesh Kothari (Manager-EOU commercial) (161 Points)
Replied 21 December 2007

Cenvat is modify version of Modvat with certian new rules with less control of the regulatory authority with minimal records maintaining as the onus of credit is to be proved by the user Regds Ramesh Kothari

(Guest)

What is the diffrence between modvat and cenvet? and there use and benefit with examples.

Vijay K. Agrawal (Service) (608 Points)
Replied 22 May 2008

Nothing, Both are same only name being changed with fine tuning of the scheme

Rgd

vijay

Bivas Nag (Accounts Officer) (352 Points)
Replied 28 October 2008

Thanks for all regarding MODVAT & CENVAT Descripttion. But I thank that you all ignore the main point which is the principal difference between the Duo. The Difference is about taken credit regarding Capital Goods.

In CENVAT you can't claim 100% credit on Capital Goods in the same financial year, on which it was bought. 50% is in the same financial year and another 50% is in the next financial year. In MODVAT, it is not clarify propmptly.

If any suggestions, please call me at 092304-22652

Best Regards,

Bivas

B.COM, PGDFM, Dip.C.Excise & Customs, E-MBA (Finance)

2 Like

narinder (C.A.) (38 Points)
Replied 07 November 2008

hi bivas and other

i have query about cenvat credit

we do job work (powder coating on metal for a AC Manufacturing co. means final product is exciable) and we use our purchased raw material inclusive of excise duty . roughly raw material consumption 40% .

right now we are not registered in excise our turnover is 60 lakhs

we issue invoice as job work only for whole amount

can we register our selves in excise act and claim excise duty on our purchase?

How we will do billing like separate for job work and separate for sales

pl tell me the complete procedure and implications

thanks

narinder