PLA or account current

[Asked by Guest]

It is an account with authorised bank created aftr prior information to excise department. It is upto assess to open this account or not. Am I correct

[YAGAY and SUN]

PLA mean Personal Ledger Account. In the erstwhile rules there was a requirement to get the PLA number from the Central Excise Department but now there is no such requirement. It is a simple account of duty credit and debit. GAR 7 is the base document to deposit the duty in the authorized bank. On the basis of such deposition, assesse may avail the credit of the amount so deposited in the bank. Debit entries are made in PLA on the following events, viz:-

1. Removal of goods/Raw material/ components, capital goods etc.
2. Payment of Interest
3. Payment of Penalty
4. Payment of amount under Rule 6 of the CENVAT credit Rules etc.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

Yes, and it is upto the assessee to open bank account.. no permission/intimation/information to be provided to the excise department.

AI Summary

Personal Ledger Account: assessee may open PLA and claim duty credit without prior excise intimation.
A Personal Ledger Account (PLA) is an assessee maintained duty credit/debit ledger with an authorised bank; GAR 7 deposits enable crediting amounts to the PLA and debits occur on removals, consumption, capital goods use, interest, penalties and payments under CENVAT rules. There is no present requirement to obtain a PLA number or to seek prior permission/intimation from the excise department to open the bank account used for the PLA.