Hi All

We are registered under excise.

We have Export / Domestic sales/ Jobwork sale. We have seperate numbering systems of invoices for domestic sales and exports. Should we have seprate numbering system for jobwork / labourcharges or should we include in Domestic sales?

Please advice

Vasant Mudhlkar

Originally posted by : Vasant Mudholkar
	Hi All We are registered under excise. We have Export / Domestic sales/ Jobwork sale. We have seperate numbering systems of invoices for domestic sales and exports. Should we have seprate numbering system for jobwork / labourcharges or should we include in Domestic sales? Please advice Vasant Mudhlkar

for domestic sales you have to issue ................."tax invoice"

for export sales you have to issue ..................." export invoice"

for service tax you have to issue ......................." service tax bills"

its better to issue all three in diff series in commercial invoice series

as service is not a part of tax invoice, so you dont have to show it in VAT return also 

for excise you have to use two series of invoice 1) invoice for home consumption 2) invoice for export

MODVAT was a scheme where the manufacturer had option to take input credit on their duty paid purchases, for duty liability on their manufactured goods,

as the bill of VAT got introduced in 2003, which replaced the state sales tax, so the confussion had to arrive between vat and modvat as the vat is total state taxes and modvat is related to central excise only. 

to avoid the confussion the excise duty was renamed as "CENVAT" (Central Value Added Tax), and Cenvat Credit replaced the theory of Modvat of excise duty ( now cenvat duty) input credit available to set off the Cenvat duty liability of dutiable manufactured goods.

Cenvat scheme extended the credit of service tax, capital goods available for input credit for payment of duty towards taxable manufactured goods / taxable services. 

@ U S Sharma   .........very nicely explained...as always

Originally posted by : U S Sharma
	MODVAT was a scheme where the manufacturer had option to take input credit on their duty paid purchases, for duty liability on their manufactured goods, as the bill of VAT got introduced in 2003, which replaced the state sales tax, so the confussion had to arrive between vat and modvat as the vat is total state taxes and modvat is related to central excise only.  to avoid the confussion the excise duty was renamed as "CENVAT" (Central Value Added Tax), and Cenvat Credit replaced the theory of Modvat of excise duty ( now cenvat duty) input credit available to set off the Cenvat duty liability of dutiable manufactured goods. Cenvat scheme extended the credit of service tax, capital goods available for input credit for payment of duty towards taxable manufactured goods / taxable services.

Sharmaji nice explanation.............       actually  im not observe  deeply in this topic.  I cleared after your clarification.   any way thank you sir.

If the manufacturer is doing both taxable goods and exempted goods or exempted service in the same premises, the  CENVAT on Input (both goods and services) credit availed will have to be apportioned as per Rule 6 (3) of CENVAT Rule,2004. The reverse working has to be arrived at  and to pay 5% on exempted goods and 6% for exempted service every month, which one should note and follow.

rengaraj r.k

Modvat stands for "Modified Value Added Tax". It is a scheme for allowing relief to final manufacturers on the excise duty borne by their suppliers in respect of goods manufactured by them. eg ABC Ltd is a manufacturer and it purchases certain components from PQR Ltd for use in manufacture. POR Ltd would have paid excise duty on components manufactured by it and it would have recovered that excise duty in its sales price from ABC Ltd. Now, ABC Ltd has to pay excise duty on toys manufactured by it as well as bear the excise duty paid by its supplier, PQR Ltd. This amounts to multiple taxation. Modvat is a scheme where ABC Ltd can take credit for excise duty paid by PQR Ltd so that lower excise duty is payable by ABC Ltd

A bill of lading is a type of document that is used to acknowledge the receipt of a shipment of goods.It is just like LR Copy or Railway receipt if you send goods by road or rail. In addition to acknowledging the receipt of goods, a bill of lading indicates the particular vessel on which the goods have been placed, their intended destination, and the terms for transporting the shipment to its final destination. BL is a proof of export for claiming post export benefit.

Bill of entry: "bill of entry" means the electronic declaration accepted and assigned with a number by the Customs Computer System for further processing;

A declaration by an importer or exporter of the exact nature, precise quantity and value of goods that have landed or are being shipped out. Prepared by a qualified customs clerk or broker, it is examined by customs authorities for its accuracy and conformity with the tariff and regulations.

DEar Mr Sharma, MODVAT means -Modified Value Added Tax and CENVAT means- Central Value Added Tax.

CENVAT is the new name for Modvat w.e.f 01.04.2000, MODVAT was introduced in the year 1986.  According to this scheme,  Input tax  credit of only excise duty paid on manufacturing products (and corresponding CVD paid on imported goods) is  available to the manufacturer.  In the year 1994, the input tax credit was extended to capital goods also.

In the year 2002, service tax credit paid on input materials also available to the manufacurer.  In the year 2004, cross sectoral credit was allowed, i.e service tax assessees can avail any input tax credit on excise paid and excise assessees can avail service tax input tax credit vice versa.

rengaraj r.k

Respective Sir,

CENVAT is related to Sale tax & MODVAT for  Excise Duty