Podcast
Questions and Answers
What is the usual procedure for a department charging another department for supplies made?
What is the usual procedure for a department charging another department for supplies made?
- Charges are made only for bulk orders.
- Each department must charge for all supplies. (correct)
- Supplies are provided without any charge.
- Casual supplies may be given without charge if consent is given. (correct)
Under what circumstances can inter-departmental adjustments be permitted?
Under what circumstances can inter-departmental adjustments be permitted?
- When it fosters economy or departmental expenditure control. (correct)
- Only for special projects requiring additional funding.
- Only if all departments agree unanimously.
- If the request is made by the department head.
What should be included in payments made from one department to another if deemed necessary?
What should be included in payments made from one department to another if deemed necessary?
- Supervision and other indirect expenditure as applicable. (correct)
- Only the cost of goods supplied.
- Direct costs only.
- Administrative costs incurred by the supplying department.
How are payments between government departments typically settled?
How are payments between government departments typically settled?
Who has the authority to resolve disputes regarding the interpretation of the directions in the chapter?
Who has the authority to resolve disputes regarding the interpretation of the directions in the chapter?
What is the main purpose of maintaining Commercial Departments or Undertakings?
What is the main purpose of maintaining Commercial Departments or Undertakings?
Which of the following describes the financial operation of Commercial Departments?
Which of the following describes the financial operation of Commercial Departments?
Which exception allows the Forest Department to charge other departments?
Which exception allows the Forest Department to charge other departments?
What is stated about convict labor in relation to charges made by service departments?
What is stated about convict labor in relation to charges made by service departments?
Which commercial activity is explicitly mentioned for charging other departments?
Which commercial activity is explicitly mentioned for charging other departments?
What governs whether a department's activities are classified as Commercial?
What governs whether a department's activities are classified as Commercial?
What is the relationship between Commercial Departments and financial records?
What is the relationship between Commercial Departments and financial records?
How does a Commercial Department handle charges for supplies and services?
How does a Commercial Department handle charges for supplies and services?
Which project related cost is specifically mentioned to be charged during its construction?
Which project related cost is specifically mentioned to be charged during its construction?
What primarily differentiates Commercial Departments from Service Departments?
What primarily differentiates Commercial Departments from Service Departments?
What is the monetary limit prescribed for the agent department to avoid raising a debit against the principal department?
What is the monetary limit prescribed for the agent department to avoid raising a debit against the principal department?
Under what circumstances will the Defence services charge and be charged for inter-departmental transactions?
Under what circumstances will the Defence services charge and be charged for inter-departmental transactions?
Which type of buildings are Defence services not required to pay rent for?
Which type of buildings are Defence services not required to pay rent for?
What kind of services can a branch of a service department levy charges for?
What kind of services can a branch of a service department levy charges for?
How does the Defence services handle payments for the use of civil aerodromes?
How does the Defence services handle payments for the use of civil aerodromes?
What will happen if the Government decides that inter-departmental adjustments are undesirable?
What will happen if the Government decides that inter-departmental adjustments are undesirable?
Which of the following departments is mentioned as not requiring rent payment by the Defence services?
Which of the following departments is mentioned as not requiring rent payment by the Defence services?
In the context of subsidized services, what type of branch may charge another department?
In the context of subsidized services, what type of branch may charge another department?
For which of the following is the Defence services also not required to pay?
For which of the following is the Defence services also not required to pay?
Which statement is true regarding charges for workshops of a department?
Which statement is true regarding charges for workshops of a department?
What is the primary purpose of charging for services or supplies between departments?
What is the primary purpose of charging for services or supplies between departments?
Which of the following does NOT constitute a service rendered between departments?
Which of the following does NOT constitute a service rendered between departments?
What can be debited to the principal department when it makes payment as an agent?
What can be debited to the principal department when it makes payment as an agent?
How is land acquired by a Civil department for Public Works accounted for?
How is land acquired by a Civil department for Public Works accounted for?
What happens when land is taken up for multiple Service departments?
What happens when land is taken up for multiple Service departments?
What type of expenses related to land acquisition cannot be debited to the department acquiring the land if a Civil officer is involved?
What type of expenses related to land acquisition cannot be debited to the department acquiring the land if a Civil officer is involved?
Which of the following is true regarding the financial dealings of service departments?
Which of the following is true regarding the financial dealings of service departments?
What category of expenses is directly debited to the department for which land is acquired when employing a special officer?
What category of expenses is directly debited to the department for which land is acquired when employing a special officer?
What is the status of rent charged for residential accommodation provided by one department to employees of another?
What is the status of rent charged for residential accommodation provided by one department to employees of another?
When an agent department incurs costs on behalf of a principal department, what financial condition applies?
When an agent department incurs costs on behalf of a principal department, what financial condition applies?
What must always occur in transactions between two Governments?
What must always occur in transactions between two Governments?
What is generally required when a Government department provides services to a non-Government body?
What is generally required when a Government department provides services to a non-Government body?
Which type of departments is classified as a Service Department?
Which type of departments is classified as a Service Department?
How are Service Departments characterized according to their functions?
How are Service Departments characterized according to their functions?
What should be the typical means of providing relief from payment for services to outside entities?
What should be the typical means of providing relief from payment for services to outside entities?
What are the two categories of departments in a Government for inter-departmental payments?
What are the two categories of departments in a Government for inter-departmental payments?
Which department is NOT an example of a Service Department?
Which department is NOT an example of a Service Department?
What dictates the adjustments made for transactions between two Governments?
What dictates the adjustments made for transactions between two Governments?
What is the procedure regarding charges for supervision associated with payments made between Government departments?
What is the procedure regarding charges for supervision associated with payments made between Government departments?
Under which circumstance is a department permitted to make inter-departmental adjustments without requiring standard payments?
Under which circumstance is a department permitted to make inter-departmental adjustments without requiring standard payments?
What is the typical method for settling payments due between Government departments?
What is the typical method for settling payments due between Government departments?
Who holds the authority to resolve any disputes regarding interpretations of the financial management directions?
Who holds the authority to resolve any disputes regarding interpretations of the financial management directions?
Which type of transactions are generally not expected to involve cash payments between Government departments?
Which type of transactions are generally not expected to involve cash payments between Government departments?
Which of the following is a condition under which a Commercial Department may charge another department for services or supplies?
Which of the following is a condition under which a Commercial Department may charge another department for services or supplies?
Which of the following statements accurately reflects the role of the Forest Department in inter-departmental financial transactions?
Which of the following statements accurately reflects the role of the Forest Department in inter-departmental financial transactions?
What financial practice is allowed concerning convict labor provided to the Public Works Department?
What financial practice is allowed concerning convict labor provided to the Public Works Department?
In what scenario may a Commercial Department be exempted from charging another department for services?
In what scenario may a Commercial Department be exempted from charging another department for services?
How are charges typically applied for services rendered by one Commercial Department to another?
How are charges typically applied for services rendered by one Commercial Department to another?
What type of financial interactions can take place between the Films Division and other departments?
What type of financial interactions can take place between the Films Division and other departments?
Which of the following best describes the purpose of reorganizing departments as Commercial Departments?
Which of the following best describes the purpose of reorganizing departments as Commercial Departments?
What must happen when a project is under construction and additional police guards are supplied?
What must happen when a project is under construction and additional police guards are supplied?
Which of the following is NOT considered a reason for a department to be classified as a Commercial Department?
Which of the following is NOT considered a reason for a department to be classified as a Commercial Department?
Which piece of information is essential for determining if a department's activities can be classified as Commercial?
Which piece of information is essential for determining if a department's activities can be classified as Commercial?
Which of the following statements accurately describes Service Departments?
Which of the following statements accurately describes Service Departments?
What should be the typical means of providing financial relief from payment for services rendered to non-Government bodies?
What should be the typical means of providing financial relief from payment for services rendered to non-Government bodies?
In inter-departmental transfers, what dictates how adjustments are made between two Governments?
In inter-departmental transfers, what dictates how adjustments are made between two Governments?
Which of the following is NOT considered a characteristic of Commercial Departments?
Which of the following is NOT considered a characteristic of Commercial Departments?
Which situation is most likely to require payment when a Government department engages with a non-Government body?
Which situation is most likely to require payment when a Government department engages with a non-Government body?
Which aspect is critical in differentiating Service Departments from Commercial Departments?
Which aspect is critical in differentiating Service Departments from Commercial Departments?
What governs whether a Government department must charge for a service provided to another department?
What governs whether a Government department must charge for a service provided to another department?
Under what condition can adjustments occur between departments within the same Government?
Under what condition can adjustments occur between departments within the same Government?
What is the maximum monetary limit for an agent department to avoid raising a debit against the principal department?
What is the maximum monetary limit for an agent department to avoid raising a debit against the principal department?
In which scenario will the Defence services NOT be charged for services rendered?
In which scenario will the Defence services NOT be charged for services rendered?
Which of the following statements is true regarding inter-departmental charge adjustments?
Which of the following statements is true regarding inter-departmental charge adjustments?
What type of activities can a branch of a service department levy charges for?
What type of activities can a branch of a service department levy charges for?
Which of the following is not exempt from rent charges according to the outlined regulations?
Which of the following is not exempt from rent charges according to the outlined regulations?
What should occur when the Government decides that inter-departmental adjustments are undesirable?
What should occur when the Government decides that inter-departmental adjustments are undesirable?
What must a branch of a department tasked with subsidiary service do when charging another department?
What must a branch of a department tasked with subsidiary service do when charging another department?
How is the provision of services characterized between the Civil Aviation Department and the Indian Air Force?
How is the provision of services characterized between the Civil Aviation Department and the Indian Air Force?
What limits the Defence services from incurring charges for buildings occupied for non-residential purposes?
What limits the Defence services from incurring charges for buildings occupied for non-residential purposes?
Which type of expenses cannot be debited to the principal department when made by an agent department?
Which type of expenses cannot be debited to the principal department when made by an agent department?
What is the treatment of rent charged for residential accommodation provided by one department to employees of another department?
What is the treatment of rent charged for residential accommodation provided by one department to employees of another department?
Which scenario allows for the cost of land to be debited to a principal department?
Which scenario allows for the cost of land to be debited to a principal department?
What applies when land is taken jointly for multiple Service departments?
What applies when land is taken jointly for multiple Service departments?
Which costs are debitable to the department for which land is acquired, if not through a special officer?
Which costs are debitable to the department for which land is acquired, if not through a special officer?
Under what circumstance can a principal department be debited for services rendered by an agent department?
Under what circumstance can a principal department be debited for services rendered by an agent department?
What is the key defining characteristic of services rendered by a service department under the specified clause?
What is the key defining characteristic of services rendered by a service department under the specified clause?
What happens to costs incurred by a branch of a service department when supplying to another department?
What happens to costs incurred by a branch of a service department when supplying to another department?
In scenarios where residential accommodation is provided, what is the basis for charging rent?
In scenarios where residential accommodation is provided, what is the basis for charging rent?
What must be true about a Civil Officer acquiring land on behalf of a department?
What must be true about a Civil Officer acquiring land on behalf of a department?
Which statement best captures the charging of services between departments?
Which statement best captures the charging of services between departments?
Flashcards
Service Departments
Service Departments
Government departments that provide essential services like justice, education, or healthcare.
Commercial Departments
Commercial Departments
Government departments involved in commercial activities, such as printing, construction, or procurement.
Inter-departmental Transfers
Inter-departmental Transfers
When a government department provides a service or supplies goods to another government department, the cost is typically recorded as an inter-departmental transfer.
Rules for Inter-departmental Transfers
Rules for Inter-departmental Transfers
Signup and view all the flashcards
Transactions with Non-Government Entities
Transactions with Non-Government Entities
Signup and view all the flashcards
Adjustments Between Governments
Adjustments Between Governments
Signup and view all the flashcards
Departmental Classification
Departmental Classification
Signup and view all the flashcards
Recording Inter-departmental Charges
Recording Inter-departmental Charges
Signup and view all the flashcards
Inter-departmental Adjustment
Inter-departmental Adjustment
Signup and view all the flashcards
Departmental Supply Charges
Departmental Supply Charges
Signup and view all the flashcards
Commercial Departments or Undertakings
Commercial Departments or Undertakings
Signup and view all the flashcards
Indirect Cost Inclusion
Indirect Cost Inclusion
Signup and view all the flashcards
Government's Decision Power
Government's Decision Power
Signup and view all the flashcards
Inter-departmental Payment Methods
Inter-departmental Payment Methods
Signup and view all the flashcards
Service Department Charging Policy
Service Department Charging Policy
Signup and view all the flashcards
Forest Department Exception
Forest Department Exception
Signup and view all the flashcards
Disputes Regarding Financial Regulations
Disputes Regarding Financial Regulations
Signup and view all the flashcards
Convict Labor Payment
Convict Labor Payment
Signup and view all the flashcards
Police Guard Charges
Police Guard Charges
Signup and view all the flashcards
Films Division Charges
Films Division Charges
Signup and view all the flashcards
Billing Between Departments
Billing Between Departments
Signup and view all the flashcards
Profit Motive in Commercial Departments
Profit Motive in Commercial Departments
Signup and view all the flashcards
Lists of Commercial Departments
Lists of Commercial Departments
Signup and view all the flashcards
Interdepartmental Charges
Interdepartmental Charges
Signup and view all the flashcards
Exception for Normal Service Department Functions
Exception for Normal Service Department Functions
Signup and view all the flashcards
Exemption for Residential Accommodation
Exemption for Residential Accommodation
Signup and view all the flashcards
Agent Department Expenses
Agent Department Expenses
Signup and view all the flashcards
Land Acquisition for Public Works
Land Acquisition for Public Works
Signup and view all the flashcards
Shared Land Acquisition Costs
Shared Land Acquisition Costs
Signup and view all the flashcards
Special Acquisition Charges
Special Acquisition Charges
Signup and view all the flashcards
Acquisition by Regular Civil Officer
Acquisition by Regular Civil Officer
Signup and view all the flashcards
Monetary Limit for Agent Department Expenses
Monetary Limit for Agent Department Expenses
Signup and view all the flashcards
Agent Department Responsibilities
Agent Department Responsibilities
Signup and view all the flashcards
Monetary Limit for Inter-departmental Transactions (Article 63)
Monetary Limit for Inter-departmental Transactions (Article 63)
Signup and view all the flashcards
General Principle of Inter-departmental Transactions (Article 60)
General Principle of Inter-departmental Transactions (Article 60)
Signup and view all the flashcards
Charges for Supplementary Services (Article 64)
Charges for Supplementary Services (Article 64)
Signup and view all the flashcards
Charges for Subsidiary Services (Article 65)
Charges for Subsidiary Services (Article 65)
Signup and view all the flashcards
Inter-departmental Charging of the Defence Services (Article 63-8)
Inter-departmental Charging of the Defence Services (Article 63-8)
Signup and view all the flashcards
Rent Exemption for Defence Services and Civil Departments (Article 63-8)
Rent Exemption for Defence Services and Civil Departments (Article 63-8)
Signup and view all the flashcards
Mutual Exemption for Air Force and Civil Aviation (Article 63-8)
Mutual Exemption for Air Force and Civil Aviation (Article 63-8)
Signup and view all the flashcards
Inter-departmental Transactions: General Principle (Article 60)
Inter-departmental Transactions: General Principle (Article 60)
Signup and view all the flashcards
Rent Exemption for Defence Services: Non-residential Buildings (Article 63-8)
Rent Exemption for Defence Services: Non-residential Buildings (Article 63-8)
Signup and view all the flashcards
Free Use of Civil Aerodromes by the Indian Air Force (Article 63-8)
Free Use of Civil Aerodromes by the Indian Air Force (Article 63-8)
Signup and view all the flashcards
What are Service Departments?
What are Service Departments?
Signup and view all the flashcards
What are Commercial Departments?
What are Commercial Departments?
Signup and view all the flashcards
What are Inter-departmental Transfers?
What are Inter-departmental Transfers?
Signup and view all the flashcards
Describe Adjustments Between Governments.
Describe Adjustments Between Governments.
Signup and view all the flashcards
Explain Transactions with Non-Government Entities.
Explain Transactions with Non-Government Entities.
Signup and view all the flashcards
Explain Departmental Classification.
Explain Departmental Classification.
Signup and view all the flashcards
How are Inter-departmental Charges Recorded?
How are Inter-departmental Charges Recorded?
Signup and view all the flashcards
Explain Inter-departmental Adjustments.
Explain Inter-departmental Adjustments.
Signup and view all the flashcards
Interdepartmental Supply Charges
Interdepartmental Supply Charges
Signup and view all the flashcards
Study Notes
Inter-Departmental Transfers
- Rules for inter-departmental transfers are outlined in Chapter 4 of the Accounts Code
- Article 55: Governs conditions for a department charging for services or supplies, and record-keeping procedures.
- Article 56: Addresses adjustments in transactions between governments, based on constitution or mutual agreement.
- Article 58: Requires payment when a government department provides services or supplies to a non-government entity or fund (unless otherwise specified). Relief often comes via grant aid rather than debt remission.
- Article 59: Divides government departments into Service and Commercial departments based on principles, including specific examples.
- Service departments: focused on integral government functions (e.g., justice, police, health) or those directly supporting government operations. Examples include administration of justice, jails, police, education, medical services, public health, forests, and defense. Examples of other service departments include the department of survey, government printing, stationery, public works (building and roads), the purchase organization for the ministry of works, housing, and supply.
- Commercial departments: perform services or provide supplies for payment, operate under commercial principles (e.g., printing, public services). Examples include the currency note press, Anand creamery, biological products section, Indian veterinary institute (Izatnagar), all India radio (excluding specific departments), radio publications, department of lighthouses and lightships, government dairy farm, marine department and dockyards in the Andamans, state transport, shipping office and forest department in Andamans. Also the overseas communications service, land reclamation scheme, Himachal transport department, Sirmur rosin and turpentine factory, purchase of fertilizers, dairy sections of the national dairy research institute in Bangalore. Further, Kandla port organisation, Manipur state transport, kolar gold mines, and Delhi milk scheme.
Inter-Departmental Adjustments
- Article 60: Service departments generally cannot charge other service departments for services already part of their duties. Exceptions are permitted with documented justification, like the forest department charging for extracted forest products.
- Article 61: Commercial departments typically charge for goods and services, and can be charged in return. This principle extends to certain activities within a department even if the department overall is not a commercial one.
- Article 62: Defines rules for one department acting as an agent for another, specifying cases where the principal department should bear costs incurred by the agent one, limited by monetary limits set by the government (e.g £1000 for services).
General
- Article 68: If payments are needed between departments, necessary supervision or indirect expenses should also be covered.
- Article 69: General guidance on payment methods (book transfers or others decided jointly), depending on the specific business or accounting structure of the receiving department.
Additional Points
- Article 71: Disputes regarding the interpretation of these rules are resolved by the Comptroller and Auditor General with the President's approval.
- Other articles cover specific services/functions and associated charges (e.g., use of land, forest products, police guards, films, etc.)
- The articles address the details of governmental accounts and procedures for transactions between branches.
- The use of land (article 62) and other issues connected with it are regulated and clarified.
- A branch within a department can levy charges for supplementary services (Article 64).
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the inter-departmental transfer rules as outlined in Chapter 4 of the Accounts Code. This quiz covers key articles that govern service charges, transaction adjustments between governments, and the distinction between service and commercial departments. Enhance your understanding of these important governmental procedures.