is vat applicable to JAMMU AND KASHMIR
wat is exice and cenvat
is still excise n cenvat in existenance
wat is d relation of exice, cenvat, n vat
wen we charge exice n wen we charge vat
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Query regarding vat
Replies (1)
No VAT is not applicable to J&K
In India, an excise tax is levied on the manufacturer of goods when those goods leave the place of manufacture. Formerly called the Central Excise Duty, this tax is now known as the Central Value Added Tax (CENVAT). Manufacturers may offset duty paid on materials used in the manufacturing process by using that duty as a credit against excise tax through a process known as Central Value Added Tax Credit (CENVAT Credit). The offsetting process was formerly known as Modified Value Added Tax (MODVAT).
MODVAT was replaced by CENVAT w.e.f. 1.4.2000. Principally, there is no difference between CENVAT and earlier MODVAT.
Value Added Tax (VAT) is a sales tax collected by the government (of the state in which the final consumeris located) – which is the government of destination state on consumer expenditure.
CENVAT means, Tax on Value Addition on the goods manufactured according to CentralExcise & Customs Act Difinition. Here the value addition means the AdditionalServices/Activities etc. which converts the Input in to Output, and the output is newlyrecognised as per the this act as Exciseble goods.
Both VAT and CENVAT are in existence.
Hope you understand..!!
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