The document discusses various topics related to CENVAT (Central Value Added Tax), including: - CENVAT aims to levy tax only on value added at each stage. - VAT allows credit/set off of all taxes on all bought out items, while CENVAT only allows credit of excise duty and additional duties on inputs, capital goods, and input services for manufacturers and service providers. - Those eligible for CENVAT credit include manufacturers and service providers, and the credit covers taxes like basic excise duty, special additional duty, education cess, and service tax.

1. T.VENKATARAMANAN.FICWA.FCS.
Question and Answer
Samples and Techniques
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2. CENVAT MEANS CENTRAL VALUE ADDED TAX
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3. Excise duty is also known as cenvat
According to sec 2A the expressions duty, duty of excise,
Duties of excise shall be construed to include a reference
to cenvat .
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4. Cenvat scheme is used to achieve the aim
of levying tax only on “value added” at
each stage
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5. State the difference between vat &cenvat
vat
Cenvat
• Credit /set off all
taxes on all bought
out item
•Allstages
• onlyED& addl duties on
inputs ,capital goods &
input services
• Manufacturer or service
provider
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6. Who are eligible? & what are the taxes
covered under cenvat?
The cenvat credit is of specified duties
like Basic
ED,special, AED, NCCD,EC,SEC,SERVICE
TAX,CVD ON IMPORTED GOODS ETC.
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7. State the high lights of the scheme.
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8. SERVICE PROVIDER & MANUFACTURERS is
there any difference?
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9. THE CONDITION OF USE OF GOODS INSIDE
THE FACTORY IS NOT APPLICABLE TO
SERVICE PROVIDER.
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10. CAPITAL GOODS ARE NOT INPUTS
BUT PARTS & COMPONENTS CAN BE INPUTS.
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11. All input services relating to all activities
relating to business are eligible for cenvat
credit.
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12. Explain the definition of input u/r2(k)
They are (1)Meaning part
(2)Exclusion part
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13. List items falling under (a)meaning part(b)exclusion part
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14. Cenvat credit is allowed on input which becomes
waste & is sold as scrap
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15. What is lease tax?
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16. WHAT ARE THE SERVICES WHICH ARE
SPECIFICALLY EXCLUDED UNDER CLAUSE A
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17. Mode of credit ?
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18. Define input:
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19. Service tax is leviable under section-66(B) of the finance
act.
Inserted with effect from 01/07/2012
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20. Write short notes on
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21. Cenvat credit to be reversed when capital
goods are removed (a)w/o use. (b)after use
1)Removed & sold for Rs 800,000/= on
12/04/2013
2)After use.
3)For Rs 5000/ on 12/04/2023
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22. 10/15/2013
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23. Cen vat credit of duty paid by EOU
AV Rs 20 lakhs
BCD 10% ; ED 12 %
EC& SEC 2% & 1%
State VAT 4%
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24. 2
CD @ 5%
100,000
3
CVD @ 12 %
252,000
4
Ec
7, 040
5
SHEC
3,520
6
Addl, CD (exempted )since vat is
payable
7
Duty payable
8
Cess (2+1) %
9
Total duty as per notification 23/2003
For clearance to DTA
Cenvat credit = 252,000+ 7,251 +3626=
362,560
10,877
373,437
262,877
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25. Goods used primarily for personal use or
consumption of an employee is not
covered.
Input destroyed /pilfered & shortage also is not
covered
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26. H.O./R.O. will have to register as “input
service distributor”
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27. In the case of capital goods 50% of
credit is available in the current year
50% in the next year
25% in the next year & another 25% in the next to next year
@ of 10% every subsequent years
Any of the above
None of the above
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28. Motor vehicles are capital goods for
manufacturers but not couriers etc.
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29. Specified documents for credit of
duty includes
Manufacturer’s invoice
Dealer’s invoice
Bill of entry
Supplementary invoice
All the above
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30. What are the services included wef
1/4/2011?
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31. THE CENVAT CREDIT POOL CONSISTS OF?
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32. FROM THE FOLLOWING IDENTIFY WHICH OF
THE CREDITS ARE AVAILABLE FOR USE IN
THE CURRENT YEAR.
GOODS
DUTY
YES /NO
POLLUTION CONTROL
25,000
12,500
OFFICE EQUIPMENT
15,000
NIL
STORAGE TANK
10,000
5000
PAINT FOR M/C
6,000
6000
PACKING MATERIAL
4,000
4000
LUBRICATING OILS
8,000
8000
HSD
7,000
NIL
FREE WARRANTY PARTS
15,000
15,000
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33. MATCH THE FOLLOWING
CAPITAL GOODS REMOVED AS SUCH
As per Rule 3(5)/5A
INPUT REMOVED AS SUCH
Duty applicable for scrap value
If removed as scrap
AMOUNT = CREDIT AVAILED
CAPITAL GOODS REMOVED AFTER
USE
AMOUNT OF CREDIT AVAILED
Computer peripherals
CREDIT-2.5%FOR EACH QUARTER
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34. “Input Service Distributor” has the meaning assigned to it in
clause (m) of
rule (2) of CENVAT Credit Rules, 2004:- “Input service
distributor” means an office of the manufacturer or producer
of final products or provider of output service, Which receives
invoices issued under rule 4A of the Service Tax Rules, 1994
towards purchases of input services and issues invoice, bill or
as the case may be, challan for the purposes of distributing the
credit of service tax paid on the said services to such
manufacturer or producer or provider, as the case may be
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35. p/106
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36. What is reverse tax credit ?
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37. P/107.no reversal is required if final product is
exported or supplied to UN Agencies or to EOU /
STP/EHTP
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38. Is cenvat credit available in respect of
service tax paid on use of cell phones ?
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39. How to Use the Quiz Show Template
• Choose a Question & Answer layout from the New Slide
gallery
• Follow the placeholder prompts and fill in your actual
questions and answers
• View the presentation in slide show to see the animations
that reveal the answers
• Suggested Uses:
– Reinforcing teaching through audience participation
– Introduction to subject matter
– Recreational gatherings
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40. • The following slides are example questions using the
layouts in the Quiz Show template. View them in slide
show to see the answer animations.
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41. The Sun is a star.
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42. What is the name of our galaxy?
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43. How many planets in the solar system have
rings?
Jupiter, Saturn, Uranus, and Neptune all
have rings.
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44. What is inertia?
Measurement of electrical resistance
A ratio between mass and velocity
Resistance to motion or change
The speed at which an object falls
All of the above
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45. Match the device to what it measures:
Stop Watch
Distance
Scale
Temperature
Thermometer
Elapsed Time
Speedometer
Weight
Odometer
Rate of Travel
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