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Answer Posted / vijay gaikwad
Yes, if the goods are sold within states.
CENVAT (Central Value Added Tax) has its origin in the
system of VAT (Value Added Tax) which is prevalent in over
100 countries in the world. The concept of VAT was
developed to avoid the cascading effect of taxes. It was
found to be a very good and transparent tax collection
system, which reduces tax evasion, ensures better tax
compliance and increases tax revenue.
MODVAT (Modified Value Added Tax) was introduced in India
in 1986(re-named as CENVAT w.e.f. 1.4.2000).
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