CENVAT DETETMINATION

[Former Member]

Hi all

can any one explain the about the Cenvat determination in J1ID

[Former Member · Accepted solution]

Hi

Cenvat benifit.. i doubt this term is not used in business. CENVAT scheme means the input excise duty can be set off against output duty.

The amount of input duty is termed as cenvat credit.

If some part of input duty is allowed for cenvat, it is called partial cenvat credit.

[Former Member · Accepted solution]

hi sairam ji

we used this (CENVAT scheme) terms for that vendor whose qualify the SSI rate

i think that is the different case

my question is

suppose we have for material A, B, C, D

B, C, & D are finished product and material A is used in all thesse product as a raw material then how will maintaned these in J1ID in Cenvat determination

[Former Member]

Hi Subhash

This is a self declaration, u can declare it for at least one. u can maintain all the combinations also.

[Former Member]

sir i am little bit confused we can or we must maintane all combination

[Former Member]

hi Subhash,

You need not maintain for all combinations. On combination of RM and Finished Goods should suffice.

Prasanna

[Former Member]

Hi Subhash,

The following example may clarify u about cenvat credit.

Suppose u are using a raw material A for producing a finished product B. U have purcahse raw material from a vendor by paying Rs 100 /- Excise Duty. Some items are decalred as cenvatable. Let us assume A is a cenvatable item. U will maintain the input material as A and output material as B in J1ID for this transaction.

Then let us say the ED applicable on B (while selling) is Rs 150 /- While paying the Ed amount to Excise authorities, u will show that u have availed a credit of Rs 100/- on material A and u will pay onyl RS 50/- after sale of ur itemB.

This example is for 100% cenvatable items. There are some items for which u can avail cenvat credit for only 50% In that case u have to deduct only 50% of teh duty paid on ur raw material.

I hope this clarifies ur doubt.

Award points if useful

chintu

[Former Member]

Hi

This is to declare that the input material is used in production of finished goods.

As per excise regulation, cenvat benifit is entitled for the mateirals those are utilised in production.

[Former Member]

Hi Sairam

what cenvat benefit ?

please explain this term

[former_member225044]

In J1ID it is called Excise rate Maitenance

means in cenvat determination in small u have to define JCV1 condition type here it means at the time of Import it will convert ur CVD in to BED and u have to mainten percentage s of every condition here taht is called cenvat detrmination

sap man