VAT in India is of 2 types
1. Central Level VAT called CENVAT (Central Value Added Tax)
- State Level VAT (Different VAT for each states. For example Delhi Value Added Tax Act (DVAT) in Delhi.
Difference between CENVAT and VAT
It is imposed by Central Government
It is imposed by State Government
Same rates are applicable through out India
Rates may be different for different states
It contains of input of
It contains input of only
VAT (tax on sale of goods within state)
Adjustment of CENVAT with VAT and vice versa is not allowed
What was MODVAT?
The old name of Cenvat was MODVAT(Modified Value Added Tax Act)
MODVAT was introduced in 1986 but later its name was changed to CENVAT in 2000