what is cenvat credit expain it
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Answer / varun gupta
cenvat credit is credit taken on input,input services and
capital goods. i.e for eg:- if any manufacturer purchased
any input for production than he has to pay to his supplier
the tax on that input, and when that maufacturer himself
make that input into finished goods and he sold that
finished goods to consumer,then he will charge the tax from
the consumer. And the amount charged by him from the
consumer will be set off from the amount which manufacturer
has paid earlier and the remaining amount left after set off
should be paid to government. this is known as cenvat credit.
In this case,
input is for produts
input services is for services recieved from service provider.
| Is This Answer Correct ? | 9 Yes | 0 No |
Answer / ravisha m.m
cenvat credit rule is introdused to reduse double taxation.
it helps to exporter too.......... & it is redeuse the
burden on the final consumers....even though analysis of
this rule is difficult because every staga of manufacturing
process they will pay the tax on that ultimatly result is
whole burden should be bared by the consumers so as to govt
has to rectify it in proper way (no rigidity)
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / amol
CENVAT - Central Value Added Tax
These are related to central excise.
CENVAT means, Tax on Value Addition on the goods
manufactured according to Central Excise & Customs Act
Difinition. Here the value addition means the Additional
Services/Activities etc. which converts the Input in to
Output, and the output is newly recognised as per the this
act as Exciseble goods. Like this the discussion
is goes on for definition.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / priyanka pawar
The credit that can be claimed by a manufacturer, producer of final products or a service provider of taxable services is called cenvat credit.
| Is This Answer Correct ? | 3 Yes | 0 No |
cenvat credit generally related to exercise where as the
calculation of cenvat credit is like vat the tax which is
paid at the time of purchase for excise goods and the tax
which need to pay at the time of sales- the tax which is
paid at the time of purchase is known as cenvat credit
while paying the tax three things will be taken in to
consideration.
"As cenvat credit which is availed from excise"
"As the cenvat credit can availed from service tax"
"He can avail either from these if he is not availed
earlier depriciation
so most of them choose which ever amount is lower that
amount they will avail as cenvat credit
cenvat credit - 50% in this year
50% in subsequent years
| Is This Answer Correct ? | 6 Yes | 4 No |
Answer / debendra bagar,,rajgangpur
The full form of CENVAT IS (CENTRAL VALUE ADDED TAX) And it
means when we purchase any thing and pays the input tax on it
after processing or after addition the value on it, we sale at
desire sale price and we pays the output tax.at this time if
we have the cenvat credit the credit of input tax can be
avail.means the tax which we have already given as input tax
that tax wil not be given again with including out put
tax..so the NET TAX payable is (OUTPUT TAX-INPUT TAX)..OR TAX
ON ONLLY VALUE ADDED,,,,
| Is This Answer Correct ? | 2 Yes | 6 No |
Answer / gaurav sharan
To reduce the tax burden of the end user, Govt. of India introduced the MODVAT scheme which is now called CENVAT scheme. CENVAT is central value added tax which is basically an input duty relief scheme. CENVAT scheme tries to ensure that duty paid at the input stage is offset against duty payable at the final product stage and thus preventing cascading effect of duty on final products.
Purchased Raw Material (inputs) Rs.110 (Includes 10% Tax paid on it i.e. Rs.10)
Value addition: Rs.200 Total (1+2) Rs.310
Excise Duty on (3) above, Say 20% Rs. 62
If CENVAT credit is there,
Cost of Product= [110+ 200 + 20% ((110-10) + 200)] =Rs.370
If CENVAT credit is not there,
Cost of Product= [110+200+ 20% (110+200)] = Rs.372
| Is This Answer Correct ? | 3 Yes | 11 No |
Answer / manish tiwari
cenvat credit is nothing but central value added tax.
| Is This Answer Correct ? | 18 Yes | 43 No |
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