TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Circulars
of of All Circulars
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Clarification on Modvat Scheme: Small Scale Units Cannot Opt Out Mid-Year After Choosing Duty Payment at Start.</h1> The circular addresses queries from Central Excise Collectors about small scale units' options regarding the Modvat Scheme. It clarifies that once a manufacturer opts for Modvat and pays duty at the beginning of the financial year, they cannot opt out until the next financial year. However, if a unit initially avails full exemption and later decides to pay duty and use Modvat before reaching exemption limits, they may do so without reopening previous assessments. The guidance is based on Notification No. 175/86-C.E. and emphasizes the lack of direct correlation between inputs and final products under Modvat.
TaxTMI 