PLA or account current

[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 andSUN]

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

TeamYAGAY 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

No Prior Approval Needed to Open Personal Ledger Account for Central Excise; GAR 7 Required for Duty Deposits. A discussion on a forum addressed the nature of a Personal Ledger Account (PLA) in the context of Central Excise. A user inquired whether opening a PLA with an authorized bank requires prior information to the excise department. Responses clarified that previously, a PLA number from the Central Excise Department was required, but now it is not. The PLA functions as an account for duty credit and debit, with GAR 7 as the base document for duty deposits. It is up to the assessee to open such an account without needing permission or intimation to the excise department.