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CENVAT

rameshjaiswal
Explorer
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43

Dear All,

Please explain me what is cenvat??

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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CENVAT Means - the assessee has to obtain a duty paid invoice from the consignor and then he can take credit of such duty amount in the account maintained for this purpose and the same can be utilized by him for the payment of the duty on the goods from his factory. This credit is called CENVAT.

Reward Points please if this helps... Chirdeep

Answers (2)

Answers (2)

Lakshmipathi
Active Contributor
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Dear Ramesh

Go thru the link

[CENVAT|http://www.epw.org.in/epw/uploads/articles/5069.pdf]

Thanks

G. Lakshmipathi

Former Member
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Object documentation CENVAT Document Locate the document in its SAP Library structure

Definition

An accounting document that the system automatically creates when it generates a Part II entry.

Use

Customizing

Specify which document type you want the CENVAT documents to use, in Customizing for Logistics – General, by choosing Taxes on Goods Movements ® India ® Basic Settings ® Maintain Company Code Settings.

Day-to-Day Activities

When the system generates a Part II entry for an incoming excise invoice, it creates a CENVAT document to debit the excise duty to the excise duty account, and credit it to the CENVAT clearing account:

This graphic is explained in the accompanying text

The excise duty is cleared from the clearing account when the accounting clerk enters the vendor invoice.

When the system generates a Part II entry for an outgoing excise invoice, it creates a CENVAT document to debit the excise duty to the excise duty account, and credit it to the CENVAT suspense account:

This graphic is explained in the accompanying text

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