cenvat credit

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2010 Hi, I want to know that what is cenvat credit and how its have been used by manufacturer.

sanjay.....

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 January 2010 CENVAT Credit is, the Exise duty and service tax paid on the input materials used for manufacture

It can be used for paying the excise duty and service tax payable for the goods produced by the manufacturer

ANIL JANGID

ANIL JANGID (Expert)
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22 January 2010 agree with expert

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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24 January 2010 When a manufacture purchase exciseable material then the amount paid by him on purchase can be used to pay excise on sale. This excise paid on purchase is called Cenvat Credit.