Railway Accounts Department Examinations

Showing posts with label Material Management. Show all posts
Showing posts with label Material Management. Show all posts

Tuesday, January 6, 2026

PAC - Proprietary Article Certificate in Stores

 

PAC - Proprietary Article Certificate   ( Stores)


  • Proprietary (Adjective) -   Of a product, marketed under and protected by a registered trade name.   


  • PAC stands for Proprietary Article Certificate  


  • Simple Definition of PAC: It is a certificate from the user department stating that the purchase must be made from a particular source/brand because the item is either unique or no acceptable alternative is available. 


  • The PAC form


  1. Description of Article:  

  2. Quantity:  

  3. Approximate cost, if known: 

  4. Maker’s name and address: 

  5. Name of Local Agents:  

  6. I approve the above purchase and I certify that: - 

  1. No other make / brand will be suitable. 

  2. This is the only firm who is manufacturing / stocking this item. 

  3. A similar article is not manufactured or sold by any other firm, which could be used in lieu.  

Note: Delete (a) or (c) whichever is not necessary


Signature:

        Date:                                                                   Desg. of Officer:


   

  • Brand PAC or Qualified PAC  - (a) is certified and deleting ( c )  

  • Clear PAC  - (c ) is certified and deleting (a)   

 Two Types of PAC:   Brand/Qualified PAC and Clear PAC


1. Brand PAC / Qualified PAC - This is when the PAC certifies (a) and deletes (c).


Means: “No other make/brand is suitable, even if a similar article exists.” 


📌 Implication: There might be other products in the market, but for this specific requirement only this brand is acceptable due to reasons like fit, performance, warranty, certification, compatibility, previous experience, safety etc.


➡ Sometimes called Qualified PAC because the justification is based on suitability, not non-existence of alternatives.


Practical Example :  Wheel Sensor for Electronic Braking System (EBS)


Railway Workshop needs 150 EBS wheel sensors for a specific imported coach type.


Supplier A makes the original branded sensor (same as fitted originally).


Supplier B makes technically similar sensors.


But Railway Technical Dept. tests and certifies that Supplier B’s sensor does not comply with braking safety parameters (or warranty/spare fitting issues).


User Dept. issues PAC stating: “No other brand/make is suitable for these coaches because only Supplier A’s sensors meet the stringent performance and warranty requirements.”


🔹 Outcome: Other brands might exist, but Procurement must award to Supplier A.

This is Brand/Qualified PAC.

2. Clear PAC: This is when PAC certifies (c) and deletes (a).


Means: “No similar article is manufactured/sold by any other firm that can be used instead.” 



📌 Implication: This is a stricter condition. There is simply no alternative item or brand available in the market that could serve the purpose.


Practical Example: 


Railway Needs a specific proprietary filter element for a rare imported machine.


Only one manufacturer (say an overseas OEM) produces this exact filter.


No other manufacturer or substitute part exists anywhere in the market.


User Dept. issues PAC stating:


> “A similar article is not manufactured or sold by any other firm that could be used in lieu.”



🔹 Outcome: Purchase can only be made from that one manufacturer — there’s literally no competitor or substitute part.

This is Clear PAC.




Difference — Simplified Table

S.N

Feature

Brand / Qualified PAC

Clear PAC

1

Certification basis

Only this brand is suitable even if other similar products exist

No similar article exists at all

2

Market alternatives exists

Yes (But unsuitable)

No

3

Restriction Level

Moderate

Stronger

4

Typical Reason

Specified performance, warranty, or compatibility

No alternative product manufactured


✔ Brand/Qualified PAC allows single-source procurement when only one brand is acceptable, even if other technically similar items exist, but cannot be used.


✔ Clear PAC is used when no competitor product exists at all that could serve the need. 


Quick Memory Summary


✳️ Brand/Qualified PAC = “Suitable Brand Only”

✳️ Clear PAC = “No Similar Article Exists”


  Powers of Signing PAC: By User Department 

PHOD/CHOD

CWM/ADRM/SAG

SG/JAG

SS

JS

Above Rs.25 Lakhs

Up to Rs. 25 Lakhs

Up to Rs. 15 Lakhs

Up to Rs.2 Lakhs

Up to Rs.75000


Wednesday, October 1, 2025

SVC - Statutory Variation Clause - Stores - IRS Conditions of Contract Revised 2025

 


Source: Statutory Variation Clause (SVC) - Clause 18 (C) of IRS Conditions of Contract - Revised 2025 


 Click for IRS Conditions of Contract



1. Meaning


SVC protects both purchaser (e.g., Railways/Govt.) and contractor (supplier) from financial impact of statutory changes in GST or other taxes after tender submission.


If GST or duty rates change after tender date, the adjustment is made, subject to strict conditions.


2. GST 2.0 Context


Old slabs like 12% and 28% have been removed.


New structure under GST 2.0:


0% (essentials)


3% (precious metals)


5% (merit/essential goods)


18% (standard rate for most items)


40% (luxury/sin goods like tobacco, aerated drinks)


SVC now applies with respect to these revised slabs.

---


3. Key Rules (Simplified)


1. Effective date matters: Only GST changes after tender submission count.


2. Correct HSN code required: If contractor quotes wrong HSN or slab, no benefit under SVC.


3. Proof mandatory: Government notification of change must be produced.


4. Exclusion: Change in GST/customs duty on raw materials/components not covered. Only final contracted item covered.


5. Purchaser not liable for contractor’s errors in classification.

---


4. Practical Examples (with GST 2.0 Rates)


Example 1 – Merit to Standard Slab (5% → 18%)


Contractor quotes item under 5% slab at tender time.


Govt. later moves the item to 18% standard rate.


Purchaser must pay extra 13% GST under SVC (with proper proof).


Example 2 – Standard to No Change (18% → remains 18%)


Contractor quotes an item under 18% slab.


Even after reforms, the item continues at 18%.


No SVC claim arises.


Example 3 – Sin Goods Revision (28% → 40%)


Before GST 2.0, aerated drink was at 28% slab.


After reforms, it shifted to 40% slab.


Contractor can claim additional 12% under SVC (if correctly quoted originally).


Example 4 – Wrong Classification Denies Claim


Contractor wrongly quotes machinery at 5% instead of 18%.


Later GST rate increases. Contractor cannot claim, as misquotation removes SVC benefit.


5. Importance in Government/Railway Contracts


Ensures fairness when tax law changes mid-contract.


Prevents misuse by contractors (wrong HSN).


Keeps purchaser liable only for legitimate statutory changes.

---


In summary:

Under GST 2.0, SVC will cover rate shifts between 5%, 18%, and 40% slabs (plus 0%/3% niches) for final contracted goods, but not raw materials or wrong classifications.

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–End–




1. अर्थ


विशेष कर (SVC) क्रेता (जैसे, रेलवे/सरकार) और ठेकेदार (आपूर्तिकर्ता) दोनों को निविदा जमा करने के बाद GST या अन्य करों में होने वाले वैधानिक परिवर्तनों के वित्तीय प्रभाव से बचाता है।


यदि निविदा तिथि के बाद GST या शुल्क दरों में परिवर्तन होता है, तो सख्त शर्तों के अधीन समायोजन किया जाता है।


2. GST 2.0 संदर्भ


12% और 28% जैसे पुराने स्लैब हटा दिए गए हैं।


GST 2.0 के अंतर्गत नई संरचना:


0% (आवश्यक वस्तुएँ)


3% (कीमती धातुएँ)


5% (योग्यता/आवश्यक वस्तुएँ)


18% (अधिकांश वस्तुओं के लिए मानक दर)


40% (तंबाकू, वातित पेय जैसे विलासिता/अशुद्ध वस्तुएँ)


विशेष कर (SVC) अब इन संशोधित स्लैबों के संबंध में लागू होता है।


3. मुख्य नियम (सरलीकृत)


1. प्रभावी तिथि मायने रखती है: केवल निविदा जमा करने के बाद GST में हुए परिवर्तन ही मान्य होंगे।


2. सही HSN कोड आवश्यक: यदि ठेकेदार गलत HSN या स्लैब उद्धृत करता है, तो SVC के अंतर्गत कोई लाभ नहीं होगा।


3. प्रमाण अनिवार्य: परिवर्तन की सरकारी अधिसूचना प्रस्तुत करनी होगी।


4. बहिष्करण: कच्चे माल/घटकों पर GST/सीमा शुल्क में परिवर्तन शामिल नहीं है। केवल अंतिम अनुबंधित वस्तु ही शामिल है।


5. वर्गीकरण में ठेकेदार की त्रुटियों के लिए क्रेता उत्तरदायी नहीं है।


4. व्यावहारिक उदाहरण (GST 2.0 दरों के साथ)


उदाहरण 1 - मानक स्लैब में योग्यता (5% → 18%)


ठेकेदार निविदा के समय 5% स्लैब के अंतर्गत वस्तु उद्धृत करता है।


बाद में सरकार उस वस्तु को 18% मानक दर पर ले जाती है।


क्रेता को SVC के अंतर्गत अतिरिक्त 13% GST का भुगतान करना होगा (उचित प्रमाण के साथ)।


उदाहरण 2 - मानक से कोई परिवर्तन नहीं (18% → 18% रहता है)


ठेकेदार 18% स्लैब के अंतर्गत एक वस्तु उद्धृत करता है।


सुधारों के बाद भी, यह वस्तु 18% पर ही बनी हुई है।


कोई SVC दावा नहीं बनता।


उदाहरण 3 - पाप वस्तुओं में संशोधन (28% → 40%)


GST 2.0 से पहले, वातित पेय 28% स्लैब में था।


सुधारों के बाद, यह 40% स्लैब में स्थानांतरित हो गया।


ठेकेदार SVC के तहत अतिरिक्त 12% का दावा कर सकता है (यदि मूल रूप से सही उद्धृत किया गया हो)।


उदाहरण 4 - गलत वर्गीकरण के कारण दावा अस्वीकार


ठेकेदार ने मशीनरी पर 18% के बजाय 5% का गलत उद्धरण दिया।


बाद में GST दर बढ़ जाती है। ठेकेदार दावा नहीं कर सकता, क्योंकि गलत उद्धरण SVC लाभ को समाप्त कर देता है।


5. सरकारी/रेलवे अनुबंधों में महत्व


कर कानून में अनुबंध के बीच में बदलाव होने पर निष्पक्षता सुनिश्चित करता है।


ठेकेदारों द्वारा दुरुपयोग (गलत HSN) को रोकता है।


खरीदार को केवल वैध वैधानिक परिवर्तनों के लिए उत्तरदायी रखता है।


✅ संक्षेप में:

जीएसटी 2.0 के अंतर्गत, एसवीसी अंतिम अनुबंधित वस्तुओं के लिए 5%, 18% और 40% स्लैब (प्लस 0%/3% आला) के बीच दर परिवर्तन को कवर करेगा, लेकिन कच्चे माल या गलत वर्गीकरण को नहीं।


-समाप्त-


Saturday, August 2, 2025

Receipt Note Vs Receipt Order

 


Difference between a Receipt Note and a Receipt Order

(Material Management)


  • A Receipt Note is a document prepared by the Receipt Ward upon receiving goods. It records the details of the items received and is then forwarded to the relevant Ward, which updates its records and assigns a Receipt Order (RO) number.  


  • The Receipt Order serves as the official authorization for payment in manual transactions. Once the Receipt Order number is issued, it is communicated to the supplier through the IREPS (Indian Railways Electronic Procurement System). After receiving this confirmation, the supplier is eligible to submit their bills for payment.


In summary:


  • The Receipt Note documents the actual receipt of goods and initiates the process. It is generated by Receipt Ward.


  • The Receipt Order is the formal approval that enables payment, and its details are shared with the supplier to facilitate billing. It is generated by the relevant Ward (which is stocking the item)



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