Term Personal Ledger Account (PLA) under Indian Tax

What is Personal Ledger Account (PLA) under Indian Tax


This post explains about Personal Ledger Account (PLA) under Indian Tax.

Personal ledger Account (PLA)

Personal ledger Account is an account with the Central Government, which is utilized for payment of excise duty. The account is credited when the sum is deposited in bank by GAR-7 challan and debited on payment of excise duty.  Each debit and credit entry should be made on separate lines and assigned a running serial number for the financial year.  PLA and CENVAT credit should be used only for payment of excise duty and not for other payment like rent, lines, penalties etc.

The PLA must be prepared in triplicate by writing with an indelible pencil and using double sided carbon. Original and duplicate copies of PLA and Xerox copy of GAR-7 challans should be submitted along with monthly/quarterly ER-1/ER-3 return.  Mutilations or erasures of entries once made in the PLA are not allowed. If any correction becomes necessary, the original entry should be scored out and attested by the assesse or his authorized agent.

No restrictions exist with regard to any minimum amount, which should necessarily remain in balance to the credit of an assessed in his PLA. Practically, after introduction of monthly payment system, PLA has become redundant except in the month of March. In the month of March, duty is required to be paid before 31st March. Hence, generally assesse pays higher amount to be on safe side.

The information provided here is about Personal Ledger Account (PLA) under Indian Tax.  If you would you like to add more information about Personal Ledger Account (PLA) under Indian Tax, share below your thoughts.



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