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What is meaning of cenvat credit please described in detail.
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Answer Posted / deepika
The powers conferred on the central government. CENVAT was initially introduced as MODVAT in the year 1986 whereby the manufacturers could avail credit of duty paid on inputs used in or in relation to manufacture of the final product for being set off against the duty payable on the final products. Later it was extended to capital goods also. Actually CENVAT credit means duties of excise duty on inputs /capital goods and service tax paid on input services can be adjusted against a manufacturer's excise duty liability or a service provider's service tax liability
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