on 05-09-2009 3:12 PM
Hi experts,
Wt are the difference of MODVAT AC and CENVAT AC in excise?
Regards
Ishikesh
Hi,
CENVAT Account is having the Amount of Excise Duty whose benefit you can take from Government. It means it is the INPUT DUTY.
MODVAT Account is having the Amount of Excise Duty which you have to pay to Government. But although you can Utilize MODVAT.
Utilization means you can utilize your INPUT DUTY, means decreasing the INPUT DUTY Value.
Regards,
Vishal
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In India, an excise tax is levied on the manufacturer of goods when those goods leave the place of manufacture. Formerly called the Central Excise Duty, this tax is now known as the Central Value Added Tax (CENVAT).
Manufacturers may offset duty paid on materials used in the manufacturing process by using that duty as a credit against excise tax through a process known as Central Value Added Tax Credit (CENVAT Credit). The offsetting process was formerly known as Modified Value Added Tax (MODVAT).
thanks
G. Lakshmipathi
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Thanks to for ur replay,
Here i need to know wt is the relvence of these accounts whille excise processing?
You can see in SPRO
Specify G/L Accounts per Excise Transaction--
Here
1._G/L Account for CENVAT Offset
2._G/L account for Modvat Clearing
*3._G/L Account for CENVAT Suspense
pls dont give sap description , and i want to know how it behaves while sale process and wt is the relevence of these GL A/C's?
Regards
Ishikesh
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