Modvat

[Former Member]

I would like to know what the term modvat means ......... when i save the excise invoice it says invoice saved and modvat database updated. plss assist

Regards

Maddy

Edited by: Maddy on Jul 10, 2008 7:22 AM

[Lakshmipathi · Accepted solution]

Dear Maddy

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