Stores Contracts - Types (Rate, Running & Fixed Quantity)

 

Stores Contracts - Types 

Rate Contacts - features:

• Supply materials on demand, irrespectively of quantity 

• Supplying the materials during the period of currency of the Contract 

 

• Fixed unit rates 

Running Contracts - features: 

• Specified quantity - with a percentage of tolerance either way 

 

• Supplying the materials during the period of currency of the Contract  

 

• Fixed unit rates  

Fixed Quantity Contracts - features: 

 

• Definite quantity  (in one or more installments) 

 

• Supplying the materials by a definite date 

 

• At the agreed rates. 

Comparison of Stores Contracts 

Type/Feature	Rate Contract	Running Contract	Fixed Quantity Contract
Quantity	Irrespective of (Whatever, the Purchaser demands)	Specified  (with a % tolerance either way)	Fixed  (Definite)
Rate	Fixed	Fixed	Agreed
Delivery Date	As and when ordered  (During the period of currency)	As and when ordered  (During the period of currency)	By a Definite Date  (in One or more installments)

APA - Additional Post Allowance

 

APA - Additional Post Allowance 

• Source: Para 645 to 650 of IREM Volume I, RBA 128 of 2018 & RBE 08 of 2023

• APA stands for Additional Post Allowance 

• New allowance APA Introduced in place of abolished DCA - Dual Charge Allowance  - Based on recommendation of Committee on Allowances of 7th Pay Commission 

• Detailed guidelines for grant of APA in consultation with the Nodal dept of DOP&T - Department Of Personnel & Training. 

• With effect from 01.07.2017

• APA in Higher Post: Difference of existing Basic Pay and and Basic Pay in Higher Post or 10% of his present Basic pay per month whichever is more.  But subject to the sum total of present Basic Pay  and APA does not exceed the Apex Pay i.e., Rs.2,25,000 /-

Practical Example: 

Example: Basic Pay in Present Post - Rs.1,00,000/-  Basic Pay in Higher Post - Rs. 1,20,000 /-.  Calculation of APA is as follows: 

• Difference of Present Pay and Higher Pay  - Rs.1,20,000 minus Rs.1,00,000 = Rs.20,000

• 10% of Present Pay   -   10/100 x Rs.1,00,000 = Rs.10,000 

• Hence APA is Rs.20,000 (which is more beneficial to the Officer than Rs.10,000)

• However it is to ensure that the Present Basic Pay Rs.1,00,000 plus APA Rs.20,000 = Rs.1,20,000 does not exceed the Apex Pay i.e., Rs.2,25,000.  If it is exceeds, the APA is limited to the total of above calculation i.e., Rs.2,25,000

 

• Similar Post: If the Additional Post is at a similar level as his own post, the APA is 10% of the Present Basic Pay subject to the sum total of Basic Pay plus APA does not exceed the Apex Pay i.e.Rs.2,25,000 Per Month.   

 

• Lower Post:  No APA

 

• APA is admissible:   If the duration of the additional charge exceeds 45 days only 

 

• NO APA: An employee appointed to hold the current charge or the routine duties of an additional post, irrespective of the duration of the current charge.  

 

• Additional Post arrangement:  

• Particular vacant post:  Not more than One year 

• Particular Employee:  Not more than Six Months 

• The gap between two successive appointments of a particular employee: Minimum of One year 

• GM powers to grant APA 

• Up to JAG - Maximum period of 6 months 

• SAG          - Maximum period of 3 months 

• For SAG posts - Beyond 3 months, a full justification for the arrangement and the recommendation of PFA should be submitted to the Railway Board for obtaining the sanction.   

 

• If Additional charge of two posts with Hqrs at different stations - The officer may be allowed the TA/DA as may be separately admissible in addition to APA. However, the two posts are mutually independent and are meant for different purposes.  

 

• The APA will count for the purpose of Pension and other Retirement benefits 

Key points for MCQ: 

1. APA stands for Additional Post Allowance 

2. DCA stands for Dual Charge Allowance 

3. New allowance APA is introduced in place of the abolished DCA 

4. Nodal Dept for Establishment matters - DOPT 

5. DOPT stands for Department Of Personnel & Training 

6. With effect from 1st July 2017 

7. APA = Difference between Present Basic Pay and Higher Basic Pay or 10% of Present Basic Pay whichever is more 

8. APA plus Present Basic Pay - Does not exceed the Apex Pay i.e., Rs.2,25,000 

9. Additional charge duration - At Least 45 days 

10. No APA:  Holding an additional post in Lower Grade or holding current charge or the routine duties of an additional post. 

11. Post - Not more than One year 

12. Employee - Not more than Six months

13. The gap between two successive appointments of a particular employee - Minimum One year 

14. GM Powers - SAG Posts - up to 3 months and JAG posts - up to 6 months. 

&&&&&

Income Tax Act - An Introduction

 

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Income Tax - An Introduction by Shri Goli Vijaya Kumar

Works Contracts - Types

 

 

 

Works Contracts - Types 

 

Lump Sum Contracts: 

• A contract under which the contractor engages to carry out a work or effect supply as specified and within a given period for a fixed total sum;

• His receipt of this sum being dependent on his completing the work or supply to specification and time, irrespective of the actual quantities and kind of work done or materials supplied in achieving his result. 

  

• In case of departure from the work or supply as specified  - Reduction from the consideration may be made at the discretion of the Competent authority for failure on the part of the Contractor. 

 

In simple: 

• Fixed Total sum - To be paid to the Contractor. 
• Complete the Work / Supply to the specification. 
• Within a given period.  
• Not relevant: Actual quantities of work or material supplied.   
• Suitable for Contracts like Construction of 100 Nos of Type I Quarters, Replacement of wiring in 200 Type I Quarters, etc.

 

Schedule Contract: 

• It is simplest form of Contract 

• The contractor engages to carry out a work or effect supply as specified and within a given period at fixed unit rates or prices for each of the various items comprising such work or supply,

• the sum he is to receive depending on the actual quantities and kinds or work done or materials supplied in completing the work or supply to specification and time.  

 

• It is not repugnant to the above definition to show in such contracts the approximate amount of the contract, based on approximate quantities and the fixed unit rates.   
•  

 

In simple: 

• The sum paid to the Contractor  - Depends on the actual Quantities of work or material supplied 
• Fixed unit rates or prices for each of the various items (Not Total work value)  
• Within a given period as per specifications.  
• Contract rates and quantity of various activities are fixed beforehand at the time of the award the Work. 
• Most commonly used type of Contract in Indian Railways.  
• No lump sum payment is permitted except in Earth work. 

 

Piece Work Contracts: 

• A contract under which only unit rates or prices for various kinds of work or materials are agreed upon,
• without reference either to the total quantity of work to be done or material supplied; 
• The Railway may indicate its intention as to the maximum value of the orders it is likely to place;
• but the contractor cannot claim to be given an order for more than one unit of work or supply. 
• After the contract is executed, specific orders for work or supply may be placed against it. Maximum value of One Work Order is Rs.5 Lakhs 
• The rate of progress may not be specified;
• but if it is not satisfactory the contract can be terminated. 

In Simple: 

• Agreed only unit rates or prices for various kinds of works / materials 
• No reference of Total work to be done  or  Materials to be supplied. 
• Railways indicate maximum value of work to be executed or material to be supplied. But there is no guarantee. 
• Contractor cannot be claimed to be given for more than one order. 
• After the contract is executed, specific orders for work or supply may be placed against it. 
• Maximum value of One Work Order is Rs.5 Lakhs  
•  Also called Fixed Rate Contracts 
• Generally Time period is One year. 

  

 

Example: Zonal Contracts 

What is Grant ?

 

                                                        Example: 

Grants	Amount Rs.	Vote of Parliament in
Original Grant	100	Budget Session
Supplementary Grant	20	Winter Session
Residual Modifications	(-) 5	See below Note
Final Grant	115

Note: Residual Modification sanctioned by Competent authority (i.e., Railway Board, GM, etc other than Parliament) i.e., Reappropriations, withdrawals, surrenders, etc, It may be a plus or minus amount. 

Excess Grant:  

• Regularization of Excess Expenditure  (Actual Expenditure in excess of Final Grant)  

• Authority: Article 115 of the Constitution of India 

• Excess grants are made when the expenditure has been incurred after a Financial Year has expired.  

• Actual expenditure incurred (out of Consolidated Fund) in excess of Grant voted by the Parliament will be regularized by: 

• Reasons to be fully explained by the spending authorities. 

• On the recommendation of PAC as a result of scrutiny of Appropriation Accounts of Railways and Audit Report of C&AG.  

• Presented after obtaining the recommendation of the President of India. 

Zoom Classes for 2A Candidates of Accounts Dept

 

 

New Zoom classes

For: 2A candidates of Accounts Dept

Subject: GRP - General Rules & Procedures 

Mode: Theory & MCQ Practice

Schedule: 5th December, 2023 to  5th January, 2024 

Timings: 8:30 PM to 9:30 PM

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