vat
(Guest)
Tehsinkhan Pathan
(CA CMA DISA(ICAI) B.COM)
(3956 Points)
Replied 27 February 2011
follow the link below :-
Niket Sinha
(CA CS Student B.Com-II)
(230 Points)
Replied 27 February 2011
there's no such difference between CENVAT & MODVAT..if i m not wrong, MODVAT is now known as CENVAT..!!
Cenvat=Central Value added tax...(currently being used to tax manufacture of goods as % of value of goods)
VAT= value added tax..This is the indirect taxation system wherein tax is to be paid whereever value (cost increased value) is added to the goods...
The problems with VAT is the control as every seller/dealer will have to maintain books on VAT and get himself registered...which dealers offcourse want to avoid so that black money cannot be traced...read suggested modules of ICAI for better understandibility..
NOTE:
CENVAT= Tax on manufacture
VAT= Tax on every increase in value..dats manufacturer=>dealer=>Distributor=>retailer=>customer...
Therefore VAT will be taxed every stage in sale whereever value is added to goods..!!
i hope that's useful for u..!!
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