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What is meaning of cenvat credit please described in detail.
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Answer / umesh rajput
<b>CENVAT</b>
Before I am going to explain what is cenvat, you have to under stand the Indian tax Central Excise Duty (BED). It is called as basic excise duty. Every manufacturer is liable to pay the excise duty in various kinds namely Basic Excise Duty, Special Excise Duty, Additional Excise Duty etc.,
Just think over a product which is reached to a end user, how many manufacturing activities are done. So to reduce the tax burden of the end user, the Govt. of India introduce the MODVAT scheme which is now called CENVAT scheme.
Based on this, if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest.
For example:
CENVAT availed at the time purchased various goods Rs.20,000 (EXcise duty alone)
CENVAT payable for his product at the time sales Rs.25,000
He will pay only Rs.5000 through cash deposit in PLA.
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| Is This Answer Correct ? | 120 Yes | 5 No |
Answer / h.r. sreepada bhagi
Cenvat Credit refers to availing (taking) credit of CENVAT
Charged by a manufacturer, or dealer in his sales invoice by
the purchaser of goods.
The purchaser of goods is entitled to adjust the Cenvat in
his purchase bills against the Cenvat charged in his Sales
Invoices as per the Provisions of Central Excise Act, in India.
Please refer both Central Excise & Service Tax Acts for more
information ; Availing & utilisation of Cenvat credits as
these are related.
| Is This Answer Correct ? | 150 Yes | 40 No |
Answer / prasad
CENVAT credit means excise duty and service tax paid on inputs(like raw material,fuel etc.)for manufacturing of goods is deducted from the excise duty payable on the goods manufactured..
| Is This Answer Correct ? | 95 Yes | 19 No |
Answer / vijay
The Cenvat scheme is principally based on system of
granting credit of duty paid on inputs and input services.
A manufacturer or service provider has to pay excise duty
and service tax as per normal procedure on the basis
of ‘Assessable Value’ (which is mainly based on selling
price). However, he gets credit of duty paid on inputs and
service tax paid on input services. Thus, he actually pays
amount equal to duty/service tax as shown in invoice less
the Cenvat credit available to him.
| Is This Answer Correct ? | 36 Yes | 19 No |
Answer / aditya kumar saw
Cenvat credit is a scheme where the manufactures or the
output services provides are allowed a set off of the taxes
paid on the inputs or the inputs services that are used
while Manufacturing the final products or providing the
output services
| Is This Answer Correct ? | 18 Yes | 5 No |
Answer / prahallad nayak
1.Cenvat Credit refers to taking credit of CENVAT
Charged by a manufacturer, or dealer in his sales invoice by
the purchaser of goods.
2.Because if any manufacturer purchased a material, which is duty paid, and if it is used for his further manufacturing activity, he can avail this as credit in his book based on the Central Excise Invoice. At the time of selling his manufactured goods, he is liable to pay the excise duty. He can adjust the credit which he has taken into his book and pay the rest.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / khushi sharma
Cenvat credit is a scheme where the manufacturers or the output service providers are allowed a set off the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / r.sarvanan
Cenvat Credit is a scheme where the manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / saroja.m
cenvat credit as well as service tax is paid on the products
manufactured and services provided. the tax paid on inputs,
raw materials, capital goods and input services- utilized in
manufacture of final products of a manufacturer and services
provided are allowed to be deducted/ allowed as credit
against the central excise/ service tax liability of a
manufacturer/ service provided. the scheme was introduced
for avoiding multi level taxation on same product or
service, also called cascading effect.
As regards exports, central excise duty is nil. duty
drawback is paid by govt. to exporters.
| Is This Answer Correct ? | 17 Yes | 17 No |
Answer / bangalore
In Simple Words Cenvat Credit Means Input Excise duty for Purchases
| Is This Answer Correct ? | 0 Yes | 0 No |
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