PLA deposit

[Guest]

Hi,

What will the consequences if the amount is not transferred by bank to PLA a/c by 5th of the month due to banking issues.

In such situation where there no enough balance to pay the month's excise duty, what can be done?

Kindly suggest.

[Rajagopalan Ranganathan]

Sir,

   Now there is no question of maintenance of PLA by Central Excise Assessee.  What is required under Central Excise Law is  you have to pay the cash component of the excise duty payable by you for a particular month by 6th of the following month if payment is made through internet Banking facility or by 5th of the next month if payment is made through other modes (by cash, cheque etc.). If you fail to pay the duty by the due date then you have to pay the duty amount with interest at the rate of 18 percent p.a.

Bank will not transfer any amount deposited to PLA.  After depositing the amount by T.R.6 challan, you have to take credit in PLA.  However, this practice is now discontinued after the introduction of ACES and GAR-7 challan.

AI Summary

Payment deadlines for excise duty: late deposit triggers interest and procedural limits on PLA credit. Excise payers must remit the cash component of monthly excise duty by the applicable deadline based on payment mode; late payment attracts interest at the prescribed rate. Historically, sums deposited by TR-6 challan required the assessee to take credit into the Personal Ledger Account and banks did not transfer deposits into PLA, but this practice has been discontinued following introduction of ACES and the GAR-7 challan.