|Definition||:||Modified Value Added Tax|
|Category||:||Governmental » Rules & Regulations|
What does MODVAT mean?
Modified Value Added Tax (MODVAT) is a scheme for allowing relief to final manufacturers on the excise duty borne by their suppliers in respect of goods manufactured by them. MODVAT permits a manufacturer of excisable goods to avail credit of duty paid on the notified inputs received and used in or in relation to the manufacture of final products and to utilise such credit towards the duty liability on removal of final goods. The purpose of MODVAT scheme to avoid cascading effect of taxes i.e double taxation on inputs as well as final products.
Frequently Asked Questions (FAQ)
What is the full form of MODVAT?
The full form of MODVAT is Modified Value Added Tax