Railway Accounts Department Examinations

Showing posts with label classification. Show all posts
Showing posts with label classification. Show all posts

Tuesday, April 23, 2024

Reclassification of Capital Expenditure - Office equipment, Furniture & Fixtures, ICT

 


Reclassification of Capital Expenditure


Source: Click for RB Letter No. 2023/F(X)-I/33/Misc/4 dated 06.04.2023


  • As of now, the office equipment, furniture, fixtures, computers etc are treated as Revenue expenditure irrespective of its value. 


  • However as per the Railway Board Letter under reference, wherever exceeds threshold limits, they will be treated as Capital Expenditure instead of Revenue Expenditure. The details are as follows: 


Items

Exceeding Threshold Limit  (Either of two)

Chargeable to Capital Expenditure under Plan Head ______

Value

Useful life

Office equipment and Furniture & Fixtures

1 Lakh

3 Years

PH 41 - M&P (Machinery & Plant) 

or

PH 64 - OSW (Other Specified Works)

Or

Relevant PH

Computers - Hardware & Software and Telecommunication devices

1 Lakh

3 Years

PH 17 - Computerisation

Or

Relevant Plan Head

Vehicles

(Office or otherwise)

Irrespective of value

Irrespective of useful life

PH 41 - M&P


Notes: 


  1. The items of Office equipment and Furniture & Fixtures, ICT equipment as Capital expenditure (i.e., exceeding threshold limit as above)  - Procured either as part of the Sanctioned Work or through Lumpsum provision. 

  2. ICT stands for Information & Communication Technology

Thursday, February 15, 2024

Reclassification of Capital Expenditure - Certain items

 

Reclassification of Capital Expenditure - Certain items


 

  • The following items are reclassified as Capital Expenditure w.e.f 01.04.2023





Items

Exceeding threshold limit i.e., Rs. One Lakh rupees or 3 years of useful life, either of two 

Classified as 

Plan Heads

Office equipment, Furnitures & Fixtures

Capital Expenditure

41 - M & P - Machinery & Plant


64 - OSW - Other Specified Works

Computer Hardware, Computer Software & Telecommunication devices

Capital Expenditure

17 - Computerisation 


Or Relevant Plan Heads

Vehicles

Capital Expenditure 

(irrespective of its usage (office or otherwise)

41 - M&P - Machinery & Plant

 

  • Hence, the above items (except Vehicles) which are within threshold limit i.e., Rs. One lakh or less than 3 years of useful life are classified as Revenue Expenditure. 

 

  • The above items are procured either as part of the sanctioned work or through lumpsum provision.  



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Monday, July 24, 2023

Classification of Stores

 


Classification of Stores

Features 

Ordinary

  • In General - Regular Turnover & constant Demand 

Emergency

  • To meet Emergencies -Occasional Demand -  Not readily available in the Market - Do not ordinarily wear out - Not require Renewal

Surplus

  • Moveable Surplus - Not issued in past 24 months - Likely Demand in next 24 Months (initially declared as Moveable Surplus)


  • Dead Surplus - Not issued in past 24 months - Not likely demand in next 24 Months. 

Special

  • Required for Works & Special Purposes (other than Operation/Maintenance/Repairs) 


  • Normally, such stores are directly dispatched to the Executives (without stocking in Depot)

Custody

  • For Special works and charged for such works 


  • But keep with the Stores Department for safe custody 


  • Maintains numerical records by Stores Dept.  


  • Example: Items obtained by the Mechanical Dept for construction of Rolling Stock

Inactive

  • Items that had no issues for the last 12 months

Imprest 

  • Standing advance of items to meet day-to-day operation/maintenance/repairs.   


  • Charged off to Revenue Working expenses Final Heads


  • Supervisors such as SSE, Signal Inspector, IOW, etc are allowed to maintain the Stock Imprest of nominated stores. 


  • The limits up to which stocks are to be kept - 2 to 3 months of consumption. Examples: Consumable Stores like Cotton waste, oil, grease, etc.


Friday, July 17, 2020

Plan Heads in Works expenditure - Major Changes



A Simple Guide to Understand CapEx, OpEx and Their Usage

Major Changes in Plan Heads

 

of Capital Segment of Demand No. 83 (for 2020-21) -Ministry of Railways  (Erstwhile Demand No. 16)

 

 

·         Authority: RBA No. 77/2019  issued under  Letter No.2017/AC-II/3/2 dated 29.08.2019 – ACS No.143  Click here

 

 

·         The whole exercise is trimming the Number of Plan Heads duly merged PHs into the similar nature of PH and deleting the PHs which are not required in present circumstances.  Some PHs are renamed duly giving the effect of merger. Overall 7 Plan Heads are deleted (some are merged in other PHs)

 

 

·         Major Heads for Works expenditure are

 

ü  5002 – Capital outlay on Indian Railways – Commercial Lines

ü  5003 – Capital outlay on Indian Railways – Strategic Lines

 

·         Accounting Classification of Works expenditure   - 8 digit numerical code like follows.

 

1

2

3

4

5

6

7

8

Source of Finance

Plan Head (Minor Head)

Detailed Head

Primary Unit

 

 




 

·         Sources of Finance

 

Numerical Code

(First 2 digits in Classification)

Source of Finance

Remarks

20

Capital

21

DRF – Depreciation Reserve Fund

23, 33, 43 & 53

DF I, II, III & IV respectively

25

Capital Fund

26

RSF – Railway Safety Fund

27

SRSF – Special Railway Safety Fund

Not in operation.  It was ceased in the 2008 year.

28

Capital – Nirbhaya Fund

29

RRSK - Rashtriya Rail Sanrakshak Kosh

84

EBR – IF (Extra Budgetary Resources – Institutional Finance)

 

 

 

The following Sources of Finance are ceased

 

Numerical Code

Description

Remarks

22

OLWR – Open Line Works – Revenue

Click here for reasons

24

ACSPF – Accident Compensation, Safety & Passenger Amenities Fund

Accident compensation is transferred to erstwhile Demand No.12 & SMH 10 – Miscellaneous Working Expenses.  Safety is chargeable to DF – IV.  Passenger amenities chargeable to DF - I

 

Changes in Plan Heads (Latest as per ACS – 143)

 

Deleted Plan Heads

 

Plan Head No

Description

Remarks

12

Purchase of New Lines

Deleted

34

Taking over of Line Wire from P & T Dept

37

Traction Distribution Works

Merged into PH 3600

52

Amenities for Staff

Merged into PH 5100

62

Investments in Govt Commercial undertaking – Public undertaking

Merged into PH 6100

63

Investment in Non – Govt undertaking incl: JVs/SPVs

Merged into PH 6100

83

New Lines (Construction) Dividend free project

 

Note:  PH 13 – Restoration of dismantled lines – Deleted already.

 

Modified Plan Heads

 

Plan Head No

Previous Description

New Description

Remarks

11

New Lines (Construction)

New Lines

36

OEW – Other Electrical Works Excl: Traction Distribution Works

Electrical Works

Previous PH 3700 – Traction Distribution Works is merged into PH 3600

51

Staff Quarters

Staff Welfare

Previous PH 52 – Amenities for Staff is merged into PH 51

53

1. Passenger Amenities

2. Other Railway Users amenities

Passenger & Other Railway Users amenities

Not much change. Only two parts are combined as one part

61

Investment in Govt Commercial undertaking – Road services

Investment in PSU/JV/SPV etc ( Govt & Non Govt)

Previous PHs 62 & 63 are merged in PH 61

 

Existing Plan Heads (Total -27)

 

Plan Head No

Description

Remarks

11

New Lines

14

Gauge Conversion

15

Doubling

16

Traffic facilities

17

Computerisation

New one

18

Railway Research

New one 2009 year

21

Rolling Stock

22

Leased Assets – Payment of Capital component of Lease charges to IRFC etc

New one – 2016 year

29

Road Safety Works – Level Crossing

New one

30

Road Safety Works (ROB/RUB)

New one

31

Track Renewals

32

Bridge Works, Tunnel Works & Approaches

33

S & T Works

35

Electrification Projects

36

OEW – Other Electrical Works incl: TRD works

Ph 3700- Traction Distribution Works is merged into PH 36

41

M & P – Machinery & Plant

42

Workshops incl: Production Units

51

Staff Welfare

1. Previous name of PH 51 is Staff Quarters

2.PH 52- Amenities for staff is merged into PH 51

53

Passenger & Other Railway Users’ Amenitities

Not much change. Only two parts are combined as one part

61

Investment in PSU/JV/SPV etc ( Govt & Non Govt)

Previous PHs 62 - Investments in Govt Commercial undertaking – Public undertaking & 63- Investment in Non – Govt undertaking incl: JVs/SPVs are merged in PH 61

64

Other Specified Works

65

Training / HRD

New one – 2016 year

71

Stores Suspense

72

Manufacturing Suspense

73

Miscellaneous Advances

81

MTP – Metropolitan Transport Projects

82

Transfer to SRSF – Special Railway Safety Fund

On books only. But not in operation

 

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