What is pla ?

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Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2012 what is the concept of PLA under central excise? How to make payment of duty by PLA? How to account the same?

Amit Agarwal

Amit Agarwal (Expert)
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12 July 2012 Personal Ledger Account maintain by assesee on behalf of Govt. to pay and get credit of excise duty by debiting and crediting ledger.

Regards
Amit

sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)
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13 July 2012 In addition to experts comment, I want to add that what ever you deposit in PLA (A lumpsum amount for payment of Excise Duty for the month) , that will be debited and the amount of duty you utilized for payment of Excise will be credited.

Its a ledger which will always show debit balance and the same can be utilized when you need to pay the excise duty.

Hope the matter is clear for you.

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 @sharma.ctc.@gmail.com,
Thanx sir, but what would be the journal entry at the time of deposit and at the time of availing credit?Pls....

RENGARAJ R.K

RENGARAJ R.K (Expert)
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13 July 2012 In other words, it is a bank pass book showing deposit and debit entry and closing balance as on a particular date.

Debit Excise Duty deposit account when amount is deposited.

Cr your Bank account.

When transferring the amount from bank to ED account,

Dr. Excise Duty paid a/c

Cr. Excise Duty Deposit a/c.

Availing credit will not be accounted in PLA. It is meant for cash transaction only.

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sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)
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14 July 2012 Agree with Rengaraj Sir,

The journal entry can be different and as per your ledgers available.

The other way of writing journal entry for these entries are: -

Excise PLA A/c Dr
To. Bank A/c.
(Being Amt deposited in PLA for the month...)

Excise on Sales A/c. Dr.
To. Excise PLA A/c.
(Being the duty paid on sales from PLA for the month)

You will have to make the journal once in a month.

Thanks

RENGARAJ R.K

RENGARAJ R.K (Expert)
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16 July 2012 Dear Mr sharma,

The first entry is okay. The second entry should be excise duty paid A/c, because duty is paid not only for sales, but also for tranfer of stocks, samples, destruction etc.,

If a company is not having any branches only doing factory gate sales, the second entry is okay.

regards,

sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)
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16 July 2012 Yes, this is why i said, that the entry can be changed as per your needed and nature of duty and as per the ledger name you create..

I wrote those entry to make it easy to understand for the questioner.

Thanks

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