What is Central Value-added Tax and how it is configured?

What is CENVAT (Central Value-added Tax) and how it is configured?

Anil
Before I am going to explain what is cenvat, you have to under stand the Indian tax
Central Excise Duty (BED). It is called as basic excise duty. Every manufacturer is
liable to pay the excise duty in various kinds namely Basic Excise Duty, Special
Excise Duty, Additional Excise Duty etc.,
Just think over a product which is reached to a end user, how many manufacturing
activities are done. So to reduce the tax burden of the end user, the Govt. of India
introduce the MODVAT scheme which is now called CENVAT scheme.
Based on this, if any manufacturer purchased a material, which is duty paid, and if it
is used for his further manufacturing activity, he can avail this as credit in his book
based on the Central Excise Invoice. At the time of selling his manufactured goods,
he is liable to pay the excise duty. He can adjust the credit which he has taken into his
book and pay the rest. For example:
CENVAT availed at the time purchased various goods Rs.20,000
alone)
CENVAT payable for his product at the time sales
Rs.25,000
He will pay only Rs.5000 through cash deposit in PLA.

(EXcise duty

This customizing are in SAP CIN Module. If you are having the CIN CD, go
through.
K. SUNDAR
Good Explanation. In addition to this. The CENVAT means, Tax on Value Addition on
the goods manufactured according to Central Excise & Customs Act Difinition. Here
the value addition means the Additional Services/Activities etc. which converts the
Input in to Output, and the output is newly recognised as per the this act as Exciseble
goods. Like this the discussion
is goes on for definition.
In 4.7 SAP version, there is no CIN version seperately, it is available with Standard
SAP it self.
I hope Mr. Anil Gurjar's query is completely answered.