01 July 2011
Hello everyone, i m studying idt from bangar. i understood the journal entry for availing and utilising cenvat credit and payment thereof.
but after repeated reading also i could not understand what is PLA, what is the use. what entry to be passed in the books etc. the more i read more confused i was.
so please someone who might have practical exposure in excise explain the same.If possible with example.
waiting for ur reply urgently thanks in advance abhipcc@rediffmail.com
You May Have Read Excise then u must know that excise duty is payable on removal of goods from factory.and now logically think that whenever manufacturer remove goods then whether its possible to pay duty by going again and again to bank whenever you remove goods??........
Thats why PLA account kept.... its just like Your prepaid service of Your cell phone.......means u already have balance as duty in govt account.and whenever You remove goods then crediting that account instead of paying immidiatelly.
Regards, CA Ayush Agrawal http://ayushagrawal.wordpress.com
02 July 2011
As has correctly been explained by Ayush about PLA. Let me add further the PLA means what account you have with Excise Department. The amount of Excise Duty Payable and Paid is recorded in the PLA account and in addition to that if you have taken any credit for the same then the same is also deducted from the excise duty payable by you instead of payment to be made by you.
CAclubindia
