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. 

PAC - Proprietary Article Certificate in Stores Accounts

 

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  

• 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)   

                          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

Zoom Classes for 2A Candidates of Accounts Dept

 

 

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For: 2A candidates of Accounts Dept

Subject: GRP - General Rules & Procedures 

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RO - RO in Indian Railways

  

RO - RO in Indian Railways

• RO - RO stands for Roll On - Roll Off

• What is RO RO ?  A service to carry loaded trucks on Railway Wagons powered by Electrical Engines in order to decongest Roads. It is a service where trucks and cars ride piggyback on specially designed Wagons. 

•  Win-win situation for truckers as well as for Railways  

Advantages:   

1. Decongest the Roads 

2. Saving cost of Diesel 

3. Saving Man days  

4. Reducing the pollution levels  

5. Relief to Truck Drivers  

6. Decrease in wear and tear of Trucks  

7. Reach faster to Destination 

8. Last mile connectivity

• First in IR: ECR - East Central Railway proposed across the Ganga river 

• Govt of India has accorded in-principle approval to the ECR’s proposal 

• Section 32 of the Railways Act, 1989  - Railway Administration is vested with the power to quote STS - Station to Station rates / Lump Sum rates for carriage of any commodity. 

Salient features:  

1. Railway Receipt will be issued through TMS 

2. Defined as New commodity in IRCA Goods Tariff No.49 (Part I of Vol.I) Group No.22 

3. Gross Weight of the Truck (Tare weight of Truck + Commodity Weight) - shall not exceed the PCC - Permissible Carrying Capacity of a particular Wagon. 

4. Excluded commodities:  

1. All commodities under the Main Head “Coal & Coke” 

2. Iron ore (all types) 

3. Military Traffic 

5.   Subject to levy of ODC - Over Dimensional Consignment charges, Power Block as and where applicable 

6.  Allowed as “TO and FRO” service  

7. Number of trips per month for each rake - decided by the Zonal Railway  

8. Penalty 5% on the Notional freight - If there is a shortfall in the minimum trips 

9. Force Majeure clause is applicable 

10. Free time - 3 Hours each  - At loading and unloading point. 

11. Demurrage and wharfage shall be levied as per extant rules. 

12. Maximum persons allowed - 2 (including truck driver). They have to purchase 2nd class tickets for the journey of equivalent value as per the coaching tariff. 

13. Line Capacity & RO RO ;  

•  Up to 70%  - Shall be introduced. 

•  70% and above - Shall be examined on case to case basis 

14.  BRN Wagons - A type of Flat wagon built solely for transporting Trucks on Railway wagons. Trucks are loaded through the ramp provided at the dead end of the loop on BRN wagons.  

15. A full train of BRN Wagons would have 43 Wagons.  

16. BRN / BRNA stands for Bogie Rail Truck with Airbrake 

Roll on - Roll Off  & Konkan Railways

• 1999 - The first of its kind in India, allowed loaded trucks to be transported on Railway Wagon flatcars. 

• There is NH-66 passing through the same route. Truck drivers find it extremely difficult to drive loaded trucks through ghats, undulating surfaces, narrow roads, and poor road and weather conditions. The KRCL came up with the concept of RORO, where loaded trucks are moved on wagons and traveled by train. 

Key Points for MCQ: 

1. RO - RO stands for Roll On - Roll - Off

2. First time in India - Konkan Railway - 1999 

3. First time in IR - ECR in 2016 

4. PCC stands for Permissible Carrying Capacity 

5. ODC stands for Over Dimensional Capacity 

6. Penalty - 5% on Notional freight - If there is a shortfall in the number of minimum trips. 

7. Free time - 3 Hours at the Loading and unloading point. 

8. Line Capacity & RO RO ;  Up to 70%  - Shall be introduced. 70% and above - Shall be examined on case to case basis

9. Maximum persons allowed along with Truck - 2 Persons (including Driver)  

10. BRN / BRNA stands for Bogie Rail Truck with Airbrake 

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