Admissibility of DA on Tour in Haryana

 Admissibility of DA on Tour in Haryana

-Dr. Lalit Kumar Setia

As per Haryana Civil Service Rules (TA) Rules, 2016, the Dearness Allowance is admissible to the employees who are spending a day or days away from the headquarters. The Dearness Allowance is granted for covering the cost of daily expenses incurred by the employee in consequence of such absence. However, the place of destination should be at least 20 kilometers away from the headquarter (bus stand to bus stand).

Grading of employees for admissibility of DA

As per rule 10 of Haryana Civil Service (TA) Rules, 2016, the employees are divided into 5 grades on the basis of their grade pay.

Grade V employees

The Grade V are the employees with the lowest grade pay i.e. between Rs. 1300 to Rs. 2400. Within Haryana and Chandigarh, Rs. 300 per day daily allowance is admissible to the employees. However, if the tour is outside Haryana and Chandigarh, then Rs. 400 per day dearness allowance is admissible to cover the cost of incurred expenses.

The employees drawing pay in level 4 or below, as per Haryana Civil Service Revised Pay rules, 2016 notified on 20th June 2018; are covered in grade V and admissible for DA as stated above. 

Grade IV employees

The employees with grade pay above Rs. 2400 i.e. from Rs. 2500 to Rs. 4200 are admissible for Dearness Allowance Rs. 400 per day for a tour within Haryana and Chandigarh and Rs. 500 per day for tours outside Haryana and Chandigarh. While calculating the Travelling allowance, such dearness allowance is included in the TA Bill.

The employees drawing pay in level 5 to level 7, as per Haryana Civil Service Revised Pay rules, 2016 notified on 20th June 2018; are covered in grade IV and admissible for DA as stated above. 

Grade III employees

The dearness allowance is granted Rs. 500 per day (for a tour within Haryana and Chandigarh) and Rs. 600 per day (for a tour outside Haryana and Chandigarh) as stated in the letter number 5/27/98-1FR (FD) dated 20^th June 2018 notified by Finance Department Haryana, to the employees with grade pay from Rs. 4600 to 8800. The judges of the junior division are also covered in this category.

The employees drawing pay in level 8 to level 15, as per Haryana Civil Service Revised Pay rules, 2016 notified on 20th June 2018; are covered in grade III and admissible for DA as stated above. 

The officers/officials drawing pay in All India Services Revised Pay Rules and getting pay in level 10 to 13, are admissible for DA applicable to Grade III employees as stated above.  

Grade II Employees in TA Rules

The judges of the senior division are covered in this category of employees. The employees with Grade pay from Rs. 8900 to Rs. 9800 are admissible to get Rs. 600 per day for a tour within Haryana and Chandigarh and Rs. 700 per day for tours outside Haryana and Chandigarh.

The employees drawing pay in level 16 to level 18, as per Haryana Civil Service Revised Pay rules, 2016 notified on 20th June 2018; are covered in grade II and admissible for DA as stated above. 

The officers/officials drawing pay in All India Services Revised Pay Rules and getting pay in level 14, are admissible for DA applicable to Grade II employees as stated above. 

Grade I Employees

The employees with grades pay more than Rs. 9800 i.e. above Rs. 10000 Grade Pay. The judges at the district level or additional district judges are also covered in this category. Rs. 700 per day DA is admissible if the tour is within Haryana and Chandigarh and in case the tour is outside Haryana and Chandigarh, Rs. 800 per day DA is admissible.

The employees drawing pay in level 19 and above, as per Haryana Civil Service Revised Pay rules, 2016 notified on 20th June 2018; are covered in grade I and admissible for DA as stated above. 

The officers/officials drawing pay in All India Services Revised Pay Rules and getting pay in level 15 and above, are admissible for DA applicable to Grade I employees as stated above. 

I hope it is clear that how much DA is admissible to Haryana Government employees while on tour. Any queries?

*Copyright © 2021 Dr. Lalit Kumar. All rights reserved. 

This article is written by Dr. Lalit Kumar Setia; a renowned author and trainer. He completed his Doctorate in Commerce from Kurukshetra University Kurukshetra and MBA in Information Technology from GJU, Hisar. He also wrote two books, 15 research papers, and organized more than 200 Training Courses during his working period since 2006 in Haryana Institute of Public Administration, Gurugram. The article was published on 9th October 2021 and last updated on 9th October 2021. The writer can be contacted on lalitkumarsetia@gmail.com

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Accounting Financial Procedures in Haryana Government

 Accounting Financial Procedures in Haryana Government

-Dr. Lalit Kumar Setia

There are three types of funds were maintained:

1.    Consolidated Fund:

All the receipts and payments which are done through the treasury, are come under the Consolidated Fund. Only powers are granted to withdraw the money, as per the sanctioning authority. The budget is used for taking the approval of the public/citizens through their representatives. The budget document is prepared every year and submitted to the FD by 31^st December of the previous year. For example for FY 2022-23, the proposed budget should be submitted by 31^st December 2021. After getting the budget proposal from all departments, it is presented in the assembly/parliament and the amount is allocated by 31^st March of the last year. In the field office, firstly BM-10 is prepared. Thereafter BM-2 is prepared. The DDO (HoO) will send the BM-2 to the Budget Controlling Officer (Mediators between HoO and HoD) èBudget Controlling Authority (Head of Department) èFD

The FD will prepare the consolidated form of The budget proposal and the same is converted to the Budget Speech. After allocation of the budget, the same is communicated from top to bottom.

FM èFDèBCAèBCOèDDO.

How to spend sanctioned Budget:

Seek Administrative and Financial Sanction / approval.

In each department, there are delegated powers for sanction of expenditure.

HoO – 5000 (for recurring exp.) and 10000 (for non-recurring exp.)

HoD – 50000 (for recurring exp.) and 100000 (for non-recurring exp)

FD – Full Power

If the amount of expenditure is more than the the capacity of sanctioning authority then the file will be sent to the next competent authority. In such a case, if the amount of expenditure is bifurcated into two amounts for taking the sanction at the lower level and spend the same. Then it will be considered financial irregularity, known as Split-Up Case.

Delegation of Financial Power

To speed the work of the office, generally the HoD delegates its financial powers to the HoO or Mediators.

Similarly, the FD also enhanced the powers of HoD with delegation. For example:

Suppose FD increased the power of HoD to 500000 from 100000.

HoD increased the power of HoO to 100000 from 10000.

Can HoD increase the powers of HoO further up to his delegated powers?

No. The rule is “The delegated powers cannot be further delegated”.

èAfter getting the approval of the expenditure to be done, from the competent authority

Firstly prepare the estimated expenditure in figures either with the help of approved sources or GeM or amount spent in earlier purchases.

Procure Goods / Services / Works.

Mode of Procurement:

èApproved Source èIf the items are available with the approved sources then we have to procure from them. In such as no audit objection can be raised towards the payment authority. The list of approved sources is available on https://dsndharyana.gov.in/

The Approved Source can be denied or by-pass on three parameters:

a.     The supply of the item is not available with the approved source. (No Objection Certificate / Non Availability Certificate).

b.    In case, directions from the HoD received or approval is taken from HoD to procure the items from market.

c.     In case of emergency, when there is no time to approach Approved Source and permission is granted by the Competent Authority to procure directly from the market.

Procurement from Market (Mode of Procurement in Market)

Online – Government e-Marketplace – GeM

·       Direct Purchase  - Up to 25,000

·       L-1 Purchase – 25001 to 500000

·       Online Bidding / Reverse Auction – Above Rs. 500000

Offline – Physical Market where orders are put-up in physical mode.

·       Without Quotation – Up to 10000

·       With Quotation – 10001 to 100000

·       e-Tender – Above 100000

For Direct Purchase / Without QuotationèNo Comparison is required.

For L-1 Purchase / With Quotation èAt least three prices are required.

For Online Bidding / RA / e-Tender è At least three bidders are required.

Spend the money and procure the goods.

The goods will be received by the Store in-charge / Care Taker (Store). He will inspect the items with the specifications given in the bill. If the items are not as per specifications, no entry in the stock register will be made and the items will be returned.

After finding the accurate specifications, he will accept the items and record the same in the Store register/stock register.

The bill will be sent to the Finance branch for payment. The voucher will be taken upon the concerned file and approval of payment will be taken.

After taking the approval of payment, the payment will be made to the supplier.

The items will be used to the concerned who demanded earlier.

2.    Contingency Fund

The expenditure which is unforeseen at the time of budget and required to be spent in the office, are met from the Contingency fund which is maintained at the disposal of the governor of the state. It is basically an imprest account.

3.    Public Accounts

The expenditure which is neither related to Consolidated Fund nor related to Contingency fund, is maintained in Public Accounts.

GIS, PPF, NPS, GPF, EPF etc.

For public accounts, there is an authority to monitor the expenditure which is independently allowed to create wealth.

The payments from these accounts are made as per the norms of the Government.

Payments and Receipts in Haryana Government:

èDigital Vouchers – We are supposed to scan and upload all the vouchers related to payment. In e-Billing (Maker Login).

èPayments are done directly in the account of the recipient with e-Billing UCP mode.

èThe Maker login is used to make the bill and the Checker login is used to verify the bill and the TO login is used to process the payment in the account of the payee.

èThere are two types of payments – Pay Bills (Basic Pay, DA, LTC, Arrears) and Other Bills (Medical Reimbursement, TA, Contingency Bills Payment, Personal Ledger Account related payments, and GPF Advances).

èChecker is generally DDO and the maker is a government employee supposed to support the checker for making bills.

èThe government has issued instructions for the non-maintenance of the bank account or in other words, without the permission of FD, an office cannot open and maintain a bank account for its payments or receipts.

Receipts in Haryana government:

e-GRAS è

there is a checker login for the DDOs and no maker login. The whole responsibility w.r.t. timely deposit of revenues and cash collections lie with the DDO.

In e-GRAS è

Citizen Login – 

Any person can deposit an amount directly in the receipts head of government and that receipt will be used for the entry in the cash book by the departments.

Checker Login - Checker password of e-Billing is used for it.

Next Page - Responsibilities of Head of Accounting Organizations

https://drlalitsetia.blogspot.com/2021/08/responsibilities-of-head-of-accounting.html

Public Grievance System in Haryana

Public Grievance System in Haryana

-Dr. Lalit Kumar*

C.M. Window:

The Government of Haryana is committed to ensure Good Governance in whole state and keep to curb the corrupt activities generally faced by a common man. On 25^th December 2014, the Government of Haryana launched a portal known as C.M. Window for taking the public grievances of all departments and concern under one roof. The portal is available for the public for complaints (if any), anyone face while taking the services from the Government Organizations. The C.M. Window is basically a grievance redressal and monitoring system in which anyone can register the complaint and check the status of the registered complaint through Internet either on the website or in mobile application.

e-Disha Kendras and Administrative Officers:

The C.M. Window is easily accessible in the offices of Administrative Officers, for example, in the office of Deputy Commissioners of Districts, offices of Sub-Divisional Magistrates (SDMs) and also in the offices of Ministers and Chief Minister; and anyone can easily approach the locations for submitted the complaint in written. After getting the complaint registered, action is taken in due course of time and the complaint is forwarded to the concerned office with directions to redress the grievance. The citizen can check the status of the complaint by entering the Complaint Number and Mobile Number.

In case, the citizen is not satisfied from the action taken to sort out the grievances, he / she can appear in the ‘Janta Darbar’ of the Ministers and Chief Minister and directly meet them to get the grievance settled. The portal of C.M. Window also contains the contact numbers of all officers and ministers i.e. Telephone Directory of Government Organizations; may be contacted directly if required.

Haryana Budget 2021-22 : An Overview

 Haryana Budget 2021-22 : An Overview

-Compiled by Dr. Lalit Kumar*

The Chief Minister of Haryana presented Budget today on 12th March, 2021. He proposed Budget for Rs. 1.55 Lac Crores; which is almost 13% more than the budgey of last Financial Year 2020-21.

Out of total Expenditure, 25% is related to Capital Expenditure while 75% is related to Revenue Expenditure. The Capital Expenditure is for Rs. 38,718 Crores and the Revenue Expenditure is for approximate Rs. 1.17 Lac Crores.

Last year, the revenue deficit was Rs. 20,856 Crores and in next year, it is estimated that the revenue deficit will be Rs. 29,193 Crores. The increase is revenue deficit states that there will be more expenditure on items not related to long term development of the state. 

In case, more amount is allocated for development or capital expenditure, in long-run the capacity to earn revenues is increased which also support the Government to finance its revenue expenditure. The revenue deficit is estimated at 3.29% of Gross State Domestic Product (GSDP). 

The Fiscal Deficit which is 2.9% during the year 2020-21 is estimated to be increased up to 3.83% of Gross State Domestic Product. However, the 15th Finance Commission stated to maintain the Fiscal Deficit up to 4% and the budget is also maintaining the same. 

In order to finance the revenue deficit, the debt liability is also estimated to be increased from 1.99 Lac Crores to Rs. 2.29 Lac Crores and it is estimated to be 25% of Gross State Domestic Product (GSDP). 

The Old Age Pension will be increased from Rs. 2250 to Rs. 2500 per month from 1st April, 2021. The Budget Outlay is increased from Rs. 5052 Crores to Rs. 6110 Crores and out of Rs. 6110 crores of Budget Outlay, Rs. 2998 Crores is earmarked for Agriculture and Farmers Welfare, Rs. 1274 for Cooperation, Rs. 1225 Crores for Animal Husbandry, Rs. 489 Crores for Horticulture, and Rs. 125 Crores for Fisheries. 

The Budget Outlay shows that the overall focus is to support farmers through Agriculture, Cooperation, Animal Husbandry, Horticulture, and Fisheries. The amount will be spent upon schemes of Agriculture, Crop Diversification through Horticulture, Water Conservation Schemes, and promoting Fisheries. 

Last year, the Health Sector has been allocated Rs. 6433 Crores and this year, an expenditure of Rs. 7731 Crores is earmarked for Health Sector. 

Further, the Government has also allocated Rs. 700 Crores for promoting Technology driven learning with use of digital infrastructure in Government Schools. However, earlier EDUSAT was used and remained unsuccessful. Now it is a new challenge for School Education Department to apply it and for this the School Principals, Lecturers and Teachers require training specifically in implementing Digital Education as per National Education Policy of India. 

The Government of Haryana will also provide Rs. 114.52 Crores for financial assistance to girl students. The Parivar Pehchan Patra - PPP Family IDs will be used to identify poorest families and financial assistance will be provided for uplift-ment to such beneficiaries through a new scheme i.e. The Mukhyamantri Antyodya Parivar Utthan Abhiyan - MAPUA; an amount of Rs. 1,80,000 will be used during the Financial Year 2021-22 on various measures for these poorest families including support in Education, Skills Development, Wages and Self Employment, and Job Creation etc. The objective of the Abhiyan is to uplift the families above the line of Poverty. 

*Dr. Lalit Kumar is working as Senior Faculty Member (Financial Management) in Haryana Institute of Public Administration (HIPA), Gurugram (Haryana).

Human Resource Management System and Tax Deduction at Source (TDS)

Human Resource Management System (HRMS)

In Government, during 2020-21, the year of Good Governance most of the functions are being done through transparency, and modules are being implemented in all Departments, Boards, Corporations, Autonomous Bodies to facilitate the organization for fixing responsibilities, stoppage of pay of an employee whenever required, effective use of e-Servicebook, and regulating employees' leaves properly. Apart from it, the promotions, pay fixation, and disciplinary proceedings are also being made part of the HRMS module in Government. To facilitate organizations, a module is designed. 

Purpose of Training Module:

The main objective of the above course is to build and enhance the capacities of officers in maintaining service records using Human Resource Management System and also enhance their capacities to compute accurate TDS and to submit quarterly return of e-TDS using the portal of Haryana Treasuries Department as per the latest instructions of the Haryana Government.

Target Group

This course is intended for Administrative and Finance Officers/Officials including Head of Offices, Class II Officers supporting Head of Offices, Finance Officers working in coordination with Head of Offices, and Class III Officials supporting Head of Offices and Finance Officers to perform the duties. 

By the end of this course, participants will be able to:

•     Describe and Perform Various Functions relating to maintaining Service Records on Human Resource Management System (HRMS).

•     Describe and Compute the Income Tax Liabilities of the employees and deduct the accurate amount of TDS from their salaries.

•     Process 24Q and 26Q i.e. Quarterly e-TDS Return as per the provisions of Income Tax Act and as per the latest orders of Finance Department using Haryana Treasuries Portal.

How to get Training organized:

As per the Haryana State Training Policy 2020, the Training Coordinators will identify the Officers/Officials requiring any training like above on "HRMS and TDS" and write a letter to the concerned Course Director through email to organize the course. The above module is developed by Dr. Lalit Kumar, Faculty of Financial Management, HIPA, Gurugram. He may be contacted at lalits.hipa@nic.in for organizing this training for the Officers/officials of the Haryana Government.

Payment of Tax Deduction of Source (TDS)

Tax Deduction at Source (TDS) is one type of advance tax required to be deducted by the person who made the payment and thereafter declared the same and submit to the Income Tax Department in the desired form meant for the deposit of the TDS. After deposit of the TDS amount in the Income Tax Department, it is required to file TDS Return for mentioning the Permanent Account Number (PAN) of the payee; only then the TDS is reflected in the Tax Credit Statement (26 AS) of the payee.
From the Financial year 2020-21, the employees have to declare their option to adopt either old regime tax rates (with deductions and exemptions) or new regime tax rates (without deductions and exemptions), and the Drawing and Disbursing Officers (DDOs) will deduct the TDS accordingly.

I. Why to deduct Tax Deduction at Source (TDS):

The TDS is deducted before making payments and its purpose is to prevent tax evasion and timely collection of due tax on certain taxable financial transactions. The TDS maybe required to be deducted by a person known as deductor including Individual, Hindu Undivided Family (HUF), Limited Liability Companies (LLP), Partnership Firm, Body of Individuals (BoI), Association of Individuals (AoI), and Local Authority. The tax is deducted on various types of payments including salaries, commission, professional fees, interest earned, rent, etc. The person who deducts the TDS is known as Deductor and the person whose TDS is deducted is known as Deductee. Section 206 states mandatory filing of e-TDS by the following:

(i) Government and Corporate Deductors or Collectors

(ii) The Deductors / Collectors whose accounts are audited under section 44AB

(iii) Deductors wherever number of deductees becomes more than or equal to 20.

In case, an assessee is not covered in the above three cases, then the TDS may be furnished either in physical or electronic format.

II. Types of Forms used for filing TDS Return:

There are various types of forms filled to declare and submit the Tax Deduction at Source (TDS), and filing of return of the TDS. Which type of form should be filed by whom, depends upon the nature of the financial transaction for which the TDS has been deducted by the deductor.

(i) Form 24Q:

It is provided under section 192 of the Income Tax Act that an employer will have to deduct TDS on payment of salaries paid to the employees. The TDS will be an amount based on the expected taxable income of the concerned employee. Form 24Q is a statement by which TDS on Salaries is declared by the Deductors and this form contains details of salaries paid and TDS deducted.

There are two annexures in this form; annexure-1 comprises the details of the deductor, deductees and challans and annexure-2 comprises the details relating to the amount of salaries of the deductees. Annexure-1 is required to be submitted at the end of each quarter of the financial year while annexure-2 is required to be submitted only at the end of the financial year providing details of salaries paid during the entire year.

(ii) Form 26Q:

It is provided in TDS is deducted on payments other than salaries under section 193, 194, and 200 (3) of the Income Tax Act, 1961. The TDS on payments other than salaries includes the payments like interest on securities, dividend securities, professional fees, director’s remuneration, etc. It is required to deduct TDS on the rates specified in Income Tax Act. Form 26Q contains only one Annexure. It is a statement by which TDS is declared on all payments except salaries:

• 193 – Interest on securities
• 194 – Dividend 
• 194A – Interest other than Interest on Securities
• 194B – Winnings from lotteries and crossword puzzles
• 194BB – Winnings from horse race
• 194C – Payment of contractor and subcontractor
• 194D – Insurance commission
• 194EE – Payment in respect of deposit under national savings scheme
• 194F – Payments on account of repurchase of units by Mutual Funds or UTI 94F
• 194G – Commission, prize, etc., on sale of lottery tickets
• 194H – Commission or Brokerage
• 194I(a) – Rent
•  194I(b) – Rent
•  194J – Fees for Professional or Technical Services
• 194LA – Payment of Compensation on acquisition of certain immovable property
• 194LBA – Certain income from units of a business trust
• 194DA – Payment in respect of life insurance policy
• 194LBB – Income in respect of units of investment fund
• 194IA – Payment on transfer of certain immovable property other than agricultural land 9IA
• 194LBC – Income in respect of investment in securitization trust

(iii) Form 27Q:

In case, payments are made to the Non-Resident Indians and Foreigners other than salaries; then it is required to deduct TDS and furnish in Form 27Q. The payments may include interest, dividend, bonus, or any additional sum which is an income for the Non-Resident.

(iv) Form 27EQ:

It is provided under section 206C of the Income Tax Act, 1961 that a seller will collect the tax from the payments made by the buyers of certain goods or commodities. Since the tax is collected on the payment received from the buyer, the seller, it is the tax collected at source (TCS) and Form 27EQ is used in case of collection of tax at source.

(v) Form 26QB:

The TDS on Property is furnished in Form 26QB since it is a challan-cum-return form; there is no need to submit a TDS return separately in the case of Form 26QB.

III. Due dates of filing TDS Returns:

The due dates of filing 24Q, 26Q, and 27Q for first, second, third, and fourth quarters are 31^st July, 31^st October, 31^st January, and 31^st May respectively. However, in the case of filing 27EQ the due date for the first, second, third, and fourth quarters are 15^th July, 15^th October, 15^th January, and 15^th May respectively.

IV. Procedure of filling TDS Forms:

First of all, go to the website of TIN NSDL i.e. https://www.tin-nsdl.com/. Then choose the desired TDS Form in the Downloads Tab. After that click upon ‘Quarterly Returns’ and choose ‘Regular’. It will redirect you to a new page containing desired TDS Return Form.

(i) Downloading Utility or Software for e-filing TDS:

A deductor is required to download software or utility known as Return Preparation Utility (RPU) for filling TDS form. The RPU software or utility can be downloaded from https://www.tin-nsdl.com/etds-etcs/eTDS-RPU.php as it is provided free of cost by NSDL e-Governance Infrastructure Limited to facilitate the deductors. Apart from RPU, there are many other various paid software which can be used to file TDS Return. The paid software is provided by the software companies such as BUSY, ClearTDS, TDSMAN, Tally.ERP 9 etc. The list of such software is available at https://www.tin-nsdl.com/services/etds-etcs/etds-swproviders-etds.html.

(ii) Filling Desired Information and Generating 27A and FVU File:

The software demands the desired information and creates form 27A and also generates a few files including the TDS.fvu file. Form 27A is a verification form to be signed by the deductor who is filing the TDS Return and the files including TDS.fvu file are required to be uploaded through TIN Facilitation Centre.

For each TDS return, it is mandatory to submit Form 27A summarizing the totals of amount paid in the transactions and ‘TDS Deducted in Transactions’ so that the same can be used to fix the liability of the deductees by the Income Tax Department in case income tax return (ITR) is not filed by them.

(iii) Submission of TDS Return:

The NSDL operates TIN Website where the TDS return can be furnished online. However, for submission of TDS online, the deductor should have Digital Signatures to digitally sign the TDS return. Secondly, the NSDL also set up TIN Facilitation Centres for submission of the TDS return.

After submission of TDS return either online or through TIN Facilitation center, a token number known as provisional receipt number is issued to the deductor as acknowledgment. The submitted TDS return may be accepted or rejected; in case of rejection, the reasons are also stated for rejection of the TDS return on the non-acceptance memo issued by the NSDL.

(iv) Charges for submission of TDS Return:

In case, the TDS return is submitted online using TIN Website with Digital Signatures; no charges are taken by the NSDL from the deductors. But in case, the TDS return is uploaded through TIN Facilitation Centres, the charges are imposed based on the number of deductee records in TDS Return i.e. (a) up to 100 records à Rs. 31.15, (b) 101 to 1000 records à Rs. 178, (c) More than 1000 records à Rs. 578.5. These charges are excluding service tax, which means the service tax is also charged on these uploading charges.

(v) Checking the status of submitted TDS Return:

After furnishing the TDS return, the status of the same can be checked by providing PAN number of Assessee along with the Token Number or Provisional Receipt Number of submitted TDS Return on the following link of the NSDL website:

https://onlineservices.tin.egov-nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp

V. Rate of Interest in case TDS is not deducted or not deposited:

In case, TDS is not deducted under sections 193, 194, and 200(3) of the Income Tax Act, 1961 then interest @1% per month is charged for the period from the due date of deduction to the actual date of deduction. In case, the TDS is deducted but not deposited, then interest @1.5% per month is charged for the period from actual date of deduction to actual date of payment.

VI. Penalty for non-filing or delay in filing of TDS Return:

The TDS Return should be furnished by its due date and in case of delay in filing of TDS Return, a penalty of Rs. 200 per day is imposed on the assessee under section 234E of the Income Tax Act. However, the penalty cannot exceed the total amount of tax deducted. In case, the TDS Return is not filed within 1 year from the due date of filing TDS Return, then under section 271H, in addition to the fees to be paid under section 234E; a penalty for non-filing of TDS Return is also imposed amounting to Rs. 10,000 to Rs. 1,00,000.

However, penalty under section 271H is not imposed in the case, the return is filed before the expiry of 1 year, with late filing fees and interest (if any).

VII. Revising or Correcting the TDS Return:

After submission of the TDS Return, if there are any errors noticed after submission; the deductor can file a revised TDS Return by incorporating the changes. However, charges for filing Revised or Corrected TDS Return are required to be paid separately as paid while submitting the original TDS Return.

VIII. Issue of TDS Certificates:

In case of TDS other than Salaries, it is required to issue the TDS Certificate to the deductees from whom incomes, TDS has been deducted. TDS Certificate in Form No. 16A is required to be generated from the website of the Income Tax Department within one month and 15 days after the quarter i.e. 15^th August for First Quarter, 15^th November for Second Quarter, 15^th February for Third Quarter, and 15^th May for Fourth Quarter. In case, the TDS certificate is not issued on time, then it will result in a penalty of Rs. 100 per day of default up to a maximum of tax-deductible or collectible.

Note: The Deductors can use PAN-TAN master facility available at TRACES portal to verify the correctness of PAN of the deductees. In case, there is no transaction liable to TDS/TCS is done during the quarter, the declaration in this regard should be intimated by using ‘Declaration for non-filing to avoid notice for non-filing of TDS Statement.

*Copyright © 2019 Dr. Lalit Kumar. All rights reserved.

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Procurement of Goods in Government

Procurement of Goods and Condemnation 
of Un-serviceable Stores

-Dr. Lalit Kumar

1. Procurement of Goods in Government

In earlier article, we studied how tender and Central Vigilance Commission are concerned with each other. In procuring goods and services, there are rules generally followed by the procuring authorities in Government organizations. The rules can easily be understood by categorizing the purchases in various types like, (i) Purchase Without Quotation, (ii) Purchase with Quotations, (iii) Tender System, (iv) Online Procurement.

(i) Purchase Without Quotation:

The small purchases cannot afford the cost of tendering. Therefore, the authorities should decide to procure the small purchases without quotation or tender. The limit for the purchases without quotation should be fixed and such limit should be compliance strictly to avoid the financial irregularities in procurement. In General Financial Rules or State Government’s Financial Rules, the limit should be cited properly, however the limit can be revised by issuing the circular or notification by the competent authorities. In such purchases, the procuring authority certifies, “I, …… am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.”

In Government of India or central government department, the limit of such purchases is up to Rs. 25000 in each occasion. In Haryana Government, the limit of such purchases is up to Rs. 10000 in each occasion.

(ii) Purchase with Quotation:

In case of purchase amounting more than the specified limit of ‘purchase without quotations’; then quotation can be used up to a specified limit and in case such limit crossed, tender system is adopted for procurement of goods and services. In purchase with quotation or tender; it is required to frame a committee of at least three officers. The committee firstly survey the market and check the rates of the goods to be procured. The quality standards and specifications are also determined. In order to identify appropriate supplier with ensuring Economy, Efficiency, and Effectiveness in procurement; quotations from at least three vendors or suppliers are collected. After collecting the quotations, a comparative statement is prepared and jointly certified by the committee members with comments from which supplier it is economical to procure the goods. 

In Government of India or Central Government Departments, the limit for such purchases is for amount within the limits of Rs. 25001 to Rs. 100000. In Haryana Government, the limit of such purchases is for amount within the limits of Rs. 10001 to Rs. 100000.

2. Condemnation and Disposal of Store Articles

The Financial Rules contain the provisions for disposal of unserviceable store articles or surplus stores. In Haryana Government, the Punjab Financial Rules are followed. It is given in rules that the Director, Supplies and Disposal Haryana is entrusted for condemnation and disposal of store articles however in case of vehicles, the office of Deputy Commissioner constitute Condemnation Committee for disposal of unserviceable vehicles.

(a) Disposal of Goods other than Vehicles:

In every quarter, the Head of Departments prepare a statement of unserviceable articles or surplus stores and forward the same to Department of Supplies and Disposal on 1^st Jan, 1^st April, 1^st July, and 1^st October of each year.

The book value of the stores decides at which level the goods can be disposed through auction. If the book value is up to Rs. 10,000 then the goods are disposed at the level of Department but if the book value is more than Rs. 10,000 then a statement of the goods with value sent to the Department of Supplies and Disposal and put up to a Condemnation Board consisting for five persons including representative of indenting department, one from Department of Supplies and Disposal, One from the Deputy Commissioner office of the concerned District, and two from the Government Departments depending upon the nature of goods in question or goods to be disposed through auction i.e. may be from Irrigation Department, Public Health, Prisons, Police, Agriculture, Industries, Health Services, Forests etc.

Since the statement of goods to be disposed, received in each quarter; the board members meet in the month of Jan, Apr, Jul, and October and fix the reserve prices of the store articles in the inspection report and the report is sent by the indenting department to the concerned Administrative Department for declaring the stores unserviceable or Surplus for disposal. After getting the approval of Administrative Department, the indenting department send the case to Department of Supplies and Disposal (DSND). The DSND refer the case to Department of Industries for auction.

Auction of Unserviceable or Surplus Stores:

The DSND invites tenders for auction of the stores. However, the sanction is required to Department of Industries if the book value of the stores is more than 25,000. If it is less than Rs. 25,000 then no sanction required from Department of Industries.

(b) Disposal of Vehicles:

The Deputy Commissioners at District Level under their chairmanship with the help of committees including one representative of indenting organization, Sub-Divisional Officer (Mechanical) from PWD (B&R) Department, and Works Manager of Haryana Roadways. An auction notice is published in the press and the vehicles are brought to the venue of auction at least one hour before the scheduled time of auction. The GST also collected (in addition) to the auction price settled by the bidders.

Auction of Vehicles:

An amount for Rs. 500 collected as earnest money from each bidder and the successful bidder requires to deposit 25% of the highest bid on the spot and the remaining 75% is required to be deposited within 72 hours. After getting the full payment, the delivery of vehicle is made with Sales order to the successful bidder.

In next article, it is detailed how tenders are floated and types of tenders in Government.

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