Utilization of Cenvat Credit

Abstract

The concept of CENVAT credit is a beautiful one which prevents the cascading effect of tax but also much useful for the assesses. The cross-utilization process increases the utilization of CENVAT credit by the manufacturers as well as the output service providers. The concept of CENVAT credit is to curb the cascading effect. The utilization of CENVAT credit is on the increase. A comparative statement showing the details of service tax paid in cash through Personal Ledger Account (PLA) and through CENVAT credit account during the last five years.