what is cenvat credit expain it
Answer Posted / afridi
SCHEME DESIGNED TO REDUCE THE CASCADING EFFECT OF INDIRECT
TAXES ON FINAL PRODUCTS.
New Cenvat Credit Rules 2004 have been introduced with
effect from 10-9-2004 in place of earlier CENVAT CREDIT
RULES , 2002 AND SERVICE TAX CREDIT RULES,2O02
This credit can be utilized for payment of excise duty on
final products and service tax on output services. Credit
taken on input services can be used for payment of excise
duty and vice versa.
Credit can be taken for all services used in relation to
setting up, modernization or repairs of a factory, services
relating to advertisement or sales promotion, management,
recruitment etc.
Particulars Under non-Cenvat Rs. Under Cenvat Rs.A Raw
material 100 100
Add excise duty @16% 16 16
Total 116 116
Credit allowable Nil 16
Net cost of X 116 100
B Value Addition 100 100
Product Y 216 200
Add excise duty @16% 34.56 32
Total cost 240.56 232
Credit allowable Nil 32
Net cost of X 240.56 200
c Value Addition 100 100
Product Z 340.56 300
Add excise duty @16% 54.40 48
Total cost of Z 394.56 348
Credit allowable Nil 48
Net cost Z 394.56 300
Is This Answer Correct ? | 52 Yes | 35 No |
Post New Answer View All Answers
what is the method of work contract tax computation
Dear Experts, Please advice, what are the rate of WCT , and is it differ from individual to companies in case of deduction ( if i am the deducting person)
Any body tell me about VAT (Karnataka)shortly because, iam reading vat book but iam not able to understand that. if any body tell me shortly about karnataka vat, retursn, tax collectng, tax payment, CENVAT utilizing etc. pleseeeeee
Pl give the abstract details of Karnataka VAT Payment procedure, rebating, returns filing in connection of manufacture, distributer & retailer.
Excise duty applicable for Handmade Production?
in a company, if employee contributing To PF equal to employer contribution. can he voluntarily stop his contribution while he is in service with that company?
When & how vat audit takes Place in haryana. Is Scrutiny & vat audit is same?
Sir please confirm job work sale for clothes shat d1 yes & no
When and how Wct is applicable on Labour Job Work and what is the percentage?
how to generate H-form and procedure for generate?
hi which form issue again ogs purches & sales ? which is the tax rat we issue c form?it's cst3% is avelabe to issue the c-form?
if i paid interest on tds for ex:- tds deducted on rent for the month of april, may, june rs. 20000 each for month and tds paid on 7th july then i have to pay interest @ 1.5% for rs. 1200 , 900 , 600 respectively , so i wanted to know what is the entry for rising of this interest in accounting software other than tally
Is there any criteria for percentage define of TDS rates? and What is the major advantage of introducing DTC and GST by Central Govt?
Our business is an international call center. we are selling antivirus which is buying rs 200 & selling Rs 4500.what will be the purchase & sales.& what will be taxation processor to calculate tax
what is WCT rate in chhattisgarh