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Receipt and Payment Rules -1983, SECTION IV.—PURCHASE OF STORES.

 

SECTION IV.—PURCHASE OF STORES.

124. The term "Stores".—

In this Section, the term 'Stores' is used to indicate all articles and materials required for the public service and coming into an office's possession for various purposes which are budgetted for and classifiable under heads of expenditure such as works, tools and plant, machinery, equipment, material and supply.

125. Application-—

Subject to such general or special rules or subsidiary instructions as may be issued by the Government for the guidance of officers who" are required to make purchases of stores for purposes of the Government, the payments for acquisition of stores required for the public service shall be regulated by rules in this section except in so far as they are supplemented or varied by authorised departmental regulations.

126. Purchases in India other than through Directorate General of Supplies and Disposals.—

(1)             Subject as hereinafter provided, the provisions of Section III of this Part shall apply generally to payments for stores purchased in India otherwise than through the Director General, Supplies and Disposals.

(2)             As a general rule, payment for supplies is not permissible unless the stores have been received and surveyed. Payments prior to verification of quality and quantity of the materials may be permitted in exceptional cases only, provided that adequate safeguards exist to secure the Government against all losses in the event, of the materials being found short or defective. In all such cases, the amount required for payment shall be drawn on an abstract bill (G.A.R. 30), giving full description of the charges and number and date of sanction permitting advance payment (wherever necessary). In such cases of advance payments, as soon as the supplies are received, a detailed bill (G.A.R. 29) prepared on the basis of the actual verification and measurement of the supplies, along with the required sub-vouchers, must be submitted to the Accounts Officer in adjustment of the advance drawn earlier quoting Voucher No. and date of the relevant abstract bill.

The provisions of rule 102 shall be followed.

NOTE.—Wherever stores are supplied by one Department to another and debits are required to be raised through the Accounts channel, the following instructions should be printed on all forms of invoices for the supply of stores, etc., and the officer receiving the supply should comply with them before the invoice is countersigned:—

'It is essential for purposes of accounting and audit that the entries below should be filled in. Failure to do so may result in unnecessary delay and return of this invoice for compliance.

(1) Department or Office to which the charge is debitable...........................

(2) Unit of appropriation (Major, Minor, Subhead and Detailed head) and Demand for

Grant......................... ..........Number............

(3) Month and year to which the charge relates

(4) Accounts Officer by whom the amount is payable

127. Purchases through Directorate General of Supplies and Disposals.—

(1)              Without prejudice to the generality of the provisions contained in Section I and III of this Part with regard to withdrawal of moneys from the Government Account, the procedure relating to payments for stores purchased through the Director General, Supplies and Disposals may be regulated by special orders issued by the Government in this behalf.

(2)              Subject as aforesaid, payments will be made by the organisation under the Chief Controller of Accounts, Department of Supply and inter-departmental adjustments effected against the Department concerned through their accounts organisations in accordance with the procedure prescribed therefor in the Civil Accounts Manual.

128 Purchases outside India through the India Supply Missions.—

Payments for all purchases ordered through the India Supply Missions at London or Washington will be arranged by the High Commission of India, London or Indian Embassy, Washington, as the case may be. the debits being passed on to India for adjustment.

129. Procedure for payment against direct orders on firms, etc., abroad.—

In regard to articles obtained by placing direct orders on firms or individuals in the United Kingdom, United

States of America or any other foreign country, payment shall be arranged in accordance with the following:—

(i)                   the drawing and disbursing officer of the Ministry or Department which has placed the order after following the usual procedure (including issue of formal sanction order therefor), shall, as soon as all the checks necessary in connection with the receipt, inspection and verification of articles have been applied, forward the firm's bill, in original, with necessary endorsement and, certificate thereon to his Accounts Officer. Particular care must be taken to ensure that no double payment is authorised in respect of the same claim. The Accounts Officer will apply usual prechecks and pass the bill.

(ii)                 Where the time schedule of payment permits, the Accounts Officer will, thereafter, purchase a bank draft in the specified foreign currency in favour of the supplier in the foreign country, through the accredited bank and forward it to the concerned departmental officer for despatch to the supplier by mail or otherwise. The cost of the bank draft in rupees as reflected in the bank scroll will be booked by the Accounts Officer against the relevant head of account.

(iii)                Wherever the supply order or order in regard to acceptance of tender involves heavy payments, with a specific payment schedule clause therein, usually a letter of credit is opened in favour of foreign suppliers through the accredited bank of the Ministry or Department concerned. Alternatively, payment could also be arranged by telegraphic bank transfer from India directly into the payee's pre-specified bank account abroad as soon as the completed invoice and all relevant documents as required by the terms of the contract are received in the Ministry, Department or by the bank in India, nominated by the Ministry or Department for the purpose, so as to strictly adhere to the stipulated time schedule of payment. Special care should be taken to ensure that the requisite documents are promptly passed on by the bank to the respective authorities in the Ministry or Department concerned for verification where the time schedule is to reckon from the date of receipt of the same by the Department or bank whichever is earlier.

(iv)                In the case of stores ordered by a Ministry or Department direct from firms abroad on FOB basis and subject to inspection by the India Supply Mission, London or Washington, the procedure prescribed above will be supplemented by a check that the inspection certificate on the supplier's bill has been recorded by the India Supply Mission concerned.

NOTE 1—Special care should be taken by the purchasing Department in differentiating the action required on its part in connection with the purchase of stores or articles or both through the agency of Indian Supply Mission, London or Washington (the agency function covering invitation and acceptance of tenders and or placing contracts, inspection of stores or articles and payment aspects), from that required where inspection and shipping only is arranged through these agencies. Provisions of rule 128 shall be applicable in regard to payment in the former type of cases and provisions of clause (iv) will be applicable in the latter type of cases.

NOTE 2.—This rule covers purchases from abroad made under the normal procedures and rules. Purchases and procurement of stores under special arrangements will be governed by the procedure specified in the relevant agreement or instrument or undertaking.

NOTE 3.—Instructions regarding procedures for payments to foreign suppliers for imports covered under various foreign aid (credits, loans or grants) programmes and, instruction's regarding procedures for accounting of cash and equipments grants received by the Government from various foreign Governments or Institutions, are required to be issued by the Controller of Aid Accounts and Audit (Department of Economic Affairs) -for each loan, credit or grant agreement, separately, duly approved by the Controller General of Accounts on the advice of the Comptroller and Auditor General.

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