CENVAT(Central VAT) Central VAT (CENVAT) The Modvat Scheme was replaced by a new set of rules called CENVAT Credit Rules 2002. A manufacturer or producer of final product is allowed to take CENVAT credit of duties specified in the Cenvat Credit Rules , 2002. WHEN AND HOW MUCH CREDIT CAN BE TAKEN 1. The Cenvat Credit in respect of inputs may be taken immediately on receipt of the inputs. 2. The Cenvat credit in respect of Capital Goods received in a factory at any point of time in a given financial year shall be taken only for an amount not exceeding fifty percent of the duty paid on such capital goods in the same financial year and the balance of Cenvat Credit may be taken in any subsequent financial year. 3. The Cenvat credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair etc. and it is established from the records that the goods are received back in the fa...
Engineering & interesting stuff !!!