VAT vs. CENVAT

VAT stands for Value Added Tax and it is levied by State Govt. on sale of goods. It is goverened by State Level VAT / Sales Tax acts

CENVAT stands for Central Value Added Tax. Actually 'Duties of Excise' are called as CENVAT :: It is tax on manufacturing or production of goods as described under The Central Excise Act, 1944. CENVAT is a central level tax and also other legislations like CENVAT credit rules, 2004 administres CENVAT.

With Regards,

Kunal Agrawal

kunalagrawal @ aol.in

Perfect reply by Kunal. Adding to that, both have been promulgmated for reducing cascading effect of

taxation.

Wish you all the best  for your future endeavours  manish and i wish that all your aspirations come true.

With best regards,