Can't understand proparly

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vishal vyas

vishal vyas (Querist)
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02 December 2013 Please Brief me the words "MODVAT" & "DUTY CREDIT" & "DUTY DEBIT", as i do not getting it properly.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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06 December 2013 MODVAT refers to an excise duty scheme introduced in 1986 for allowing relief to final manufacturers on the excise duty borne by their suppliers for goods manufactured by them. It has now been replaced by the CENVAT scheme.It applies to certain specific items and is meant to limit the cascading effect of duty incidence on a number of goods where the MODVAT credit can be claimed on the purchase of raw materials on which excise has been paid. This MODVAT credit can be used to set off the excise duty payable on subsequent manufacture of goods.

A LOT OF EXPORT ITEMS ADDED BY MINISTRY OF COMMERCE FOR EXPORTER THEN EXPORTER AVAIL BENEFIT SUCH AS FPS, VKGUY, MLFPS, LICENCE AFTER APPROPRIATE DOCUMENT SUBMISSION IN CONCERNED RJDGFT , AFTER IT RJDGFT ISSUE ISSUE LICENCE FOR THE EXPORTER FOR THE PURPOSE OF IMPORT, NOW EXPORTER CAN ALSO SELL/ TRANSFER THIS LICENCE .

WHEN THE ANY ITEMS IMPORT THE VALUE CALLED IN DUTY CREDIT.

IF IMPORT VALE REDUCE WILL CALL DEBIT DUTY.