Wednesday, December 26, 2018
Tuesday, December 25, 2018
Letter of Credit - Most Important Question
LC - Letter of Credit
(Most important question for
Expenditure and Stores optional)
·
New initiative in Indian Railways
·
With effect from - 01.04.2018
·
Applicable for supplies/
works, including all service and maintenance contracts
·
letter of credit (LC) - mode
of payment as an option in supply/works contracts to improve transparency and
the ease of doing business.
·
Apply for tenders having an estimated value of or above Rs. 10 Lakhs
·
Shall include in tender conditions an option for the contractors
to take payment from railways through LC arrangements
·
The incidental costs towards issue and operation of LC shall be
borne by the supplier /contractor.
·
SBI - State Bank of India - to assess the value of LC and terms
and conditions of LC.
·
The DA - Document of Authorisation will be issued against each
bill submitted for payment by supplier/ contractor after exercising laid down
checks as per Railway codes and manuals in executive and accounts offices .
·
Accounts Officer
responsible for passing claim will issue the DA. issue of they will be captured
in IPAS and IREPS to ensure that there is no duplicate payment against the said
bill.
·
The introduction of the Letter of Credit (LC) payment method for
supply/work contracts will significantly increase transparency and improve the
ease of doing business.
·
The Sellers should bear a cost of 0.15 %
oo How it works: Flow of Letter of Credit transactions:
1. SBI issues LC to a
Seller
2.
Railways will issue DA - Document of Authorisation to the
supplier/contractor for completed work
3.
The supplier /contractor will present the DA to his banker for
necessary payment
4.
After release of payment to the supplier/contractor, the banker
will send this DA to the Railways' banker (SBI) for release of payment to them
5. The Railways banker
(SBI) will reimburse the supplier/contractor bank, against the original DA
issued by railway and the bill of exchange issued by the supplier/ contractor,
after verifying the signatures.
$$$$$
ITC - Input Tax Credit
Input Tax Credit
·
What is Input Tax
Credit ?
Ans: Input Tax Credit means at the
time of paying tax on output, you can reduce the tax you have already paid on
inputs and pay the balance amount.
Example:
A is a manufacturer. Tax payable on the
manufactured product is Rs. 200 /-.
However he already paid tax Rs. 75/- at the time of purchase of Raw
materials. So he can pay balance tax Rs.
125/- (i.e., Rs. 200 - Rs.75/-). duly availing the Input
Tax Credit to the extent of Rs. 75/-.
Otherwise, he would be liable to pay the tax two times i.e., at the time
of purchasing Raw Materials and Selling of manufactured product.
Event
|
Tax
|
Remarks
|
On manufacture of goods
|
Rs.200/-
|
Tax liability
|
On purchase of Raw materials
|
Rs. 75 /-
|
Already paid.
|
Balance Tax to be paid
|
Rs. 125/-
|
To be paid (duly availing Rs.75/- as
ITC)
|
·
ITC is one of the fundamental features of GST
·
Seamless flow of input credit across the chain
(from the manufacture of goods till it is consumed) and across the country.
·
A person registered under composition scheme in
GST cannot claim ITC.
ü
ITC can be claimed only
for business purposes. ITC will not be available for goods or
services exclusively used for: a. Personal use b. Exempt supplies c. Supplies for which ITC is specifically not available
ü
*****
Social Service Obligations /Social costs in Indian Railways and CSR in India
Social Service Obligations /Social costs in
Indian Railways
ü
What is social service Obligation or Social cost ?
Ans: To carry out
certain transport activities which are
essentially uneconomic in nature, but in the larger interest of the
economically disadvantaged sections of the society. Losses incurred on this
account fall under Social Service Obligations of IR.
ü Losses incurred on this account fall
under Social Service Obligation of IR.
ü Social Service Obligations by IR - 2016-17
- Approx 29,600 Crores.
The
main elements of Social Service Obligation in IR are losses relating to:
(i)
Essential Commodities carried below cost;
(ii)
Passenger and Other Coaching services;
(iii)
Operation of Uneconomic Branch Lines;
(iv)
New Lines opened for Traffic during the last 15 years.
1.
Losses on transportation of
Essential Commodities carried below cost:
ü As part of the Railways’ Social
Service Obligation, certain essential commodities of mass consumption like
fruits and vegetables, sugarcane, paper, charcoal, bamboos, cotton raw pressed
etc. are carried below cost of operation in order to contain their market
prices.
ü Approximately 42 crore in 2016-17.
2.
Losses on Passenger and
Other Coaching services:
ü Analysis of
the profitability of Coaching Services in 2016-17 has revealed an overall loss
of ` 39500 crore. Out
of which, Net suburban losses in Chennai, Kolkata, Mumbai & Secunderabad –
Rs.5,389 Crores
ü Low Second class ordinary fares (sub
& non sub) constitutes 79 % of total traffic but provide only 17% of total
passenger earnings.
ü Season tickets – Non suburban constitutes 23 % of Total Non suburban traffic But
provides only 1 % of Earnings
ü Season tickets – Suburban constitutes 61
% of total traffic but provide only meager 40 % of total passenger earnings.
ü Commuters availing concession Monthly
and Quarterly Season Tickets on Suburban Sections of Chennai, Kolkata, Mumbai
and Secunderabad.
ü (iv) Concessions in Fare extended to
various categories such as (i) Recipients of gallantry awards (ii) National
sports awards (iii) Participants in National and State sports tournaments (iv)
Teachers honored with National awards (v) Shram awardees (vi) War widows (vii)
Patients suffering from cancer, tuberculosis and other serious diseases (viii)
Handicapped persons (ix) Press correspondents (x) Film technicians etc. (v)
Concessions are also extended to (i) Military traffic (ii)Postal traffic (iii)
Transportation of registered newspapers & magazines etc. and (iv) Traffic
to the North East.
ü IR also steps in to provide emergency relief
by transporting materials like food, water, fodder etc. to areas affected by
natural disasters like drought, cyclone, earthquake etc.
3.
Operation of Uneconomic
branch lines
ü Despite concerted efforts to enhance
earnings on branch lines, most of these lines remain commercially unviable.
ü The Railway Reforms Committee
recommended closure of 40 such lines but due to stiff public resistance and
opposition by State Governments towards withdrawal of such services, only 15
lines have been closed permanently by the Railways.
ü As on date 99 uneconomic branch lines
existed
ü
On
an original investment of Rs.4,476Crores on Uneconomic Branch lines, the losses
during the year 2016-17 amounted to Rs. 1,855 crore.
4.
New lines opened for traffic
during the last 15 years:
ü The Railway Convention Committee (RCC)
in its 9th Report on this subject has noted that in the present state of
Railway finances and prevalent high costs of construction, the Railways are not
in a position to inject adequate capital investment in under-developed areas.
ü Therefore, they have felt that reliefs
like making available land free of cost and waiver of dividend payment on such
lines for a minimum period of twenty years are justified.
ü Periodic reviews have revealed that of the 17
lines examined in 2016-17, as part of Social Service Obligations of the
Railways for development of backward areas, all lines are showing either
negative or unremunerative returns
Compensation for Social Service Obligations in Other Countries:
Railways,
the world over, are called upon to meet certain public service obligations at
lower tariffs for which they are adequately compensated for by the government.
Such support is provided in various forms and for different purposes like:
(i)
Compensation for losses on account of concessional tariffs;
(ii)
Out-right grant to cover deficits;
(iii)
Soft loans to meet the deficits;
(iv)
Financial support to maintain viability of the system and to earn marginal
profits;
(v)
Writing off of accumulated debts and unproductive capital; and
(vi)
Support for investment and infrastructure maintenance.
Corporate Social Responsibility
Corporate social responsibility is
the responsibility of the corporate entity towards the society in consideration
of the support given and sacrifices made by the society. The corporations
exploit the natural resources of the country, cause incidental damage to
environment and inconvenience to the people of the project area. Therefore,
they have a responsibility towards the society to share a part of their profit.
CSR and India
·
Section 135 & Schedule VII of Companies
Act, 2013
·
2 % of the average net profits of the last 3
years.
·
Activities
of reduction of poverty, education, health, environmental sustainability,
gender equality, vocation skills etc
·
Railways
wish to use CSR funds of Railway PSUs such as CONCOR, IRCTC, IRCON, RITES &
RVNL
·
For
utilising the CSR amounts to upgrade passenger amenities in major stations such
as Mumbai, Howrah, New Delhi, Guwahati, Patna, Varanasi, Vadodara, Chennai,
Agra and Bengaluru.
***
Monday, December 24, 2018
FAQ – Passing marks /Aggregate Percentage / Exemption in Appendix 3 Examination
FAQ – Passing marks /Aggregate Percentage / Exemption in
Appendix 3 Examination
What are the passing marks for the
examination ?
Ans:
Paper
|
General category
|
SC/ST category
|
Advanced Book keeping
|
40 %
|
30%
|
General Rules & Procedures
|
40%
|
30%
|
Optional Paper with
Books
|
40%
|
30%
|
Optional Paper without books
|
40%
|
30%
|
Note: 45% for general category
and 35% for SC/ST category in aggregate in both papers of Optional subject
Example
Mr A (OC candidate)secured the following marks in
Appendix3 exam
Subject
|
Minimum passing marks
|
Minimum Aggregate %
|
Secured
|
Secured Aggregate%
|
Result
|
Remarks
|
General Rules & Procedure
|
40
|
-
|
42
|
-
|
Passed
|
|
Advanced Book keeping
|
40
|
-
|
36
|
-
|
failed
|
|
Optional Paper one with books
|
40
|
45
|
65
|
= 65+39/2 = 52%
|
Failed
|
Though he secured aggregate 52% , he didn’t
secured minimum of 40 marks in without books paper
|
Optional paper one without books
|
40
|
39
|
Failed
|
|||
Optional Paper Two with books
|
40
|
45
|
49
|
= 49+40/2 =44.5%
|
Failed
|
Though he secured minimum 40 marks in
both papers, he failed to get aggregate 45%
|
Optional paper Two without books
|
40
|
40
|
Failed
|
That means, OC candidate has to
secure minimum of 40% marks in each paper and 45% in aggregate of both the
papers (with books and without books)
Mr B (SC/ST candidate) secured the following marks
in Appendix3 exam
Subject
|
Minimum passing marks
|
Minimum aggregate %
|
Secured
|
Aggregate
|
Result
|
Remarks
|
General Rules & Procedure
|
30
|
-
|
33
|
-
|
Passed
|
|
Advanced Book keeping
|
30
|
-
|
28
|
-
|
failed
|
|
Optional Paper one with books
|
30
|
35
|
42
|
= 42+28/2 =35%
|
Failed
|
Though he secured aggregate 35%, he didn’t
secured minimum of 30 marks in without books paper
|
Optional paper one without books
|
30
|
28
|
failed
|
|||
Optional Paper Two with books
|
30
|
35
|
39
|
= 39+30/2 =34.5%
|
Failed
|
Though he secured minimum 30 in both
papers, he failed to get aggregate 35% .
|
Optional paper Two without books
|
30
|
30
|
Failed
|
That means, SC/ST candidate has to
secure minimum of 30% marks in each paper and 35% in aggregate of both the
papers (with books and without books)
Exemption – Common for both OC & SC/ST
candidates
A candidate who fails in the examination but
shows marked excellence in any subject by obtaining not less than 60 per cent
of the maximum marks of that subject will be exempted from further examination
in that subject in subsequent examinations.
Examples are
Examples are
Subject
|
Qualify for
exemption
|
Aggregate Percentage
for exemption
|
Secured
|
Secured Aggregate
percentage
|
Exempted
or
not exempted
|
Remarks
|
General Rules & Procedure
|
60
|
-
|
65
|
-
|
Exempted
|
|
Advanced Book keeping
|
60
|
-
|
58
|
-
|
Not exempted
|
He got only 58
marks.
|
Optional Paper one with books
|
60
|
60
|
85
|
85+55/2 = 70%
|
Not Exempted
|
Though he got aggregate
60%, he failed to get 60% in without books paper
|
Optional paper one without books
|
60
|
55
|
||||
Optional Paper Two with books
|
60
|
60
|
61
|
61+62/2= 61.5%
|
Exempted
|
|
Optional paper Two without books
|
60
|
62
|
That means, 60%
marks required in individual paper as well as aggregate for both papers of
optional paper to exempt.
Subscribe to:
Posts (Atom)