The document discusses CENVAT, which is a value-added tax applied on goods and services in India. It provides the following key points: - CENVAT is levied only on the value added at each stage of production or provision of services, unlike VAT which allows credits on all purchases. - Manufacturers and service providers registered under CENVAT can claim credit for duties paid on inputs, capital goods, and input services. - Eligible capital goods allow 50% credit in the first year and 25% each in the next two years. - Specified documents like invoices and bills of entry must be maintained to claim CENVAT credit.

1. Question and Answer
Samples and Techniques
T.VENKATARAMANAN.FICWA.FCS.

2. CENVAT MEANS CENTRAL VALUE ADDED TAX

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 .

4. Cenvat scheme is used to achieve the aim
of levying tax only on “value added” at
each stage

5. State the difference between vat &cenvat
• Credit /set off all
taxes on all bought
out item
•Allstages
vat
• onlyED& addl
duties on inputs
,capital goods &
input services
• Manufacturer or
Cenvat

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.

7. State the high lights of the scheme.

8. SERVICE PROVIDER & MANUFACTURERS is
there any difference?

9. THE CONDITION OF USE OF GOODS INSIDE
THE FACTORY IS NOT APPLICABLE TO
SERVICS PROVIDER.

10. CAPITAL GOODS ARE NOT INPUTS
BUT PARTS & COMPONENTS CAN BE INPUTS.

11. All input services relating to all activities
relating to business are eligible for cenvat
credit.

12. WHAT ARE THE SERVICES WHICH ARE
SPECIFICALLY EXCLUDED UNDER CLAUSE A

13. Mode of credit ?

14. Define input:

15. Goods used primarily for personal use or
consumption of an employee is not
covered.
Input destroyed /pilfered & shortage also is not
covered

16. H.O./R.O. will have to register as “input
service distributor”

17. In the case of capital goods 50% of
credit is available in the current year
None of the above
Any of the above
@ of 10% every subsequent years
25% in the next year & another 25% in the next to next year
50% in the next year

18. Motor vehicles are capital goods for
manufacturers but not couriers etc.

19. Specified documents for credit of
duty includes
Manufacturer’s invoice
Supplementary invoice
Bill of entry
Dealer’s invoice
All the above

20. What are the services included wef
1/4/2011?

21. THE CENVAT CREDIT POOL CONSISTS OF?

22. 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

23. CAPITAL GOODS REMOVED AS SUCH
INPUT REMOVED AS SUCH
CAPITAL GOODS REMOVED AFTER
USE
If removed as scrap
Computer peripherals
As per Rule 3(5)/5A
CREDIT-2.5%FOR EACH QUARTER
AMOUNT = CREDIT AVAILED
AMOUNT OF CREDIT AVAILED
Duty applicable for scrap value
MATCH THE FOLLOWING

24. “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

25. p/106

26. P/107

27. 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

28. • The following slides are example questions using the
layouts in the Quiz Show template. View them in slide
show to see the answer animations.

29. The Sun is a star.

30. What is the name of our galaxy?

31. How many planets in the solar system have
rings?
Jupiter, Saturn, Uranus, and Neptune all
have rings.

32. What is inertia?
All of the above
The speed at which an object falls
Measurement of electrical resistance
A ratio between mass and velocity
Resistance to motion or change

33. Match the device to what it measures:
Stop Watch
Scale
Thermometer
Speedometer
Odometer
Distance
Temperature
Elapsed Time
Weight
Rate of Travel