CEN VAT -MODVAT

[Former Member]

HI,

1 .What is the difference between CENVAT & MODVAT

2. in J1ID MODVAT DETERMINATION Which type of material we need to enter & why

3. Material assessable value -why we need to maintain, whether it has to be maintained for all types of material.

Pl suggest

[Former Member]

Hi,

1. There is no difference between CENVAT & MODVAT, both are same. Modvat means Modified Value Added Tax.

This is basically while procuring any RM, PM, and Consumable materials company has to pay the Excise Duty.At the time of materials received that excise duty will take as a Cenvat credit.

2.In J1ID Chapter ID, Output material you have to maintain for Cenvatable Materials. (RM, PM, Capital Goods, and Consumables). Based on this only we can do the cenvat credit and cenvat utlisation.

3. Assesable value is nothing but basic value of the material price ( exclusive of taxes). On Assessable value you have to calculate Excise duty, Sales taxes etc., While selling the goods (FERT, HALB) you have to maintain if it is Excise Duty involves.

I hope u r clear.

Regards,

Venkat

[Former Member]

Dear Both,

Thx for replyin.

In j1id

1. in modvat determination can we enter salable material( finished goods)

2 material & chapter-id combination there is a field GR-XREF -SINGLE GOODS RECIPT/MULTIPLE GOODS RECIPT -SINGLE CREDIT/MULTIPLE CREDIT

when we have to choose these & wat relevance it has got

Pl suggest

[Former Member]

Hai,

1. Yes, we can do.

2. Multiple Goods Receipt and Multiple credits.

It is related to whether you are allowed to receive more than one delivery per excise invoice, and, whether you can take the CENVAT credit immediately (Multiple Credits).

regards,

Venkat

[Former Member]

1. Cenvat & modavatable are same and it means those materials eligible for cridits on output while utilisation. Previously call as modavatable now call it as cenvat.

2. J1id we declare the material type becuse for posting of different registers

3. Stock transfer & subcontracting this assesble value is picking.