34 cases of irregular availing/utilisation of CENVAT
credit involving an amount of Rs 22.59 crore were found.
It is significant to national income and resulting in 1.04 percent change for every 1 percent change in GDP All the dummy variable use for this model are also significant except dummy for Cenvat
Credit Rules 2004 as these were just procedural change and has no direct influence on the collection.
Central excise duty (CENVAT
) on manufacturing: CENVAT
, commonly known as the "excise duty," is a federal tax levied on the manufacture and production of goods.
The government initiatives section provides a detailed description about the Pre-Budget Memorandum 2012-13, including removal of 10% levy sugar quota, implementation of tax incentives, Cenvat
Credit on Bagasse, tax deduction under section 35 AD and exemption from both service tax and value-added tax.
This rate was applicable if no Cenvat
credit of duty paid on inputs or input services is taken.
FICCI has also given several recommendations for the tyre industry including a request for waiver of customs duty on all raw materials not manufactured domestically and appropriate clarification be issued to the effect that tubes and flaps are "inputs" being "accessories" for tyres and thereby Rule 3(5) of the CENVAT
Rules 2004 and Rule 16 of the Central Excise Rules 2002 are not applicable being revenue neutral.
To address these major pitfalls of the prevailing taxation-system, Central Value Added Tax (CENVAT
) was introduced in early years of the new millennium (1).
The Central Excise Department has issued a exparte notice for reversal of cenvat
credit of Rs.
The companies are reducing the price due the reduction of excise duty and central value added tax (Cenvat
) by four percent.
* General CENVAT
rate on all goods reduced from 16 per cent to 14 per cent to give a stimulus to the manufacturing sector.
The introduction of CENVAT
was a big reform, so was the levy of service tax for the fast-growing service economy of the country.