VAT/MODVAT

[Former Member]

Hi fnds,

Iam Confusing with these two words...

VAT is nothing but with in the State Sales Tax...

MODVAT is nothiung but ,,,,,,,,,,,will recover the money wot we paid Excise duty before...

Plzz could clarify me my doubt....

Regards

Lucky

[Lakshmipathi]

Dear Lucky

VAT- Value Added Tax is a sales tax collected by the government of the state in which the final consumer is located.

CENVAT is the new name for MODVAT. Basically they are the same. 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.

Thanks

G. Lakshmipathi

[Former Member]

Hi,

Thanksa lot...Laxmipathi.

Points rewarded