Q:- What is the difference between MODVAT AND CENVAT ?
Ans. Definition of MODVAT
MODVAT is the value added tax which started in India from 1/3/1986 . It includes both excise duty and custom duty.
Definition of CENVAT
CENVAT is also value added tax which is started from 1/4/2000. When MODVAT is converted in CENVAT. But it does not include custom duty.