PLA Account contains details of duty paid in cash (challan) and how it is utilized against Excise duty liability
Unlike other taxes, in Excise, duty is not paid directly
The amount deposited in GAR 7 challan is deposited in PLA Account and excise duty liability is adjusted against it.
It can be said that
Output Excise Duty
Less
Input (Cenvat)
Excise Duty Liabilty
This excise duty liability is adjusted with PLA Account
Example 1
Suppose in our Excise Duty Computation
Output ED=150000
Input Cenvat=30000
What is ED Payable
View answer
ED Payable=150000-30000=120000
-ea-
Suppose Company had 70000 in PLA Account
How much more is to be deposited in PLA to pay duty?
-a-
Altleast 50000 should be depostied to pay duty
Details of PLA
| Opening Balance of PLA | 70000 |
| Add | |
| Amount Deposited | 50000 |
| Total Amount Available | 120000 |
| Less | |
| Amount Utilized for Paying Duty | 120000 |
| Closing Balance of PLA | 0 |