OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE

CHENNAI - II COMMISSIONERATE : CHENNAI - 35

TRADE NOTICE No. 43/2001 Dated : 21.06.2001

Sub. : C.Ex. - Rounding off the transaction of CBEC

to the nearest rupees. - Reg.

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A copy of O.M. - F. No. Coord-Exp./R&P Rules/2001-02/53 dated 25.05.2001 of Deputy Controller of Accounts(Coord), Office of the Principal Chief Controller of Accounts, Central Board of Excise and Customs, AGCR Building, 1^st Floor, New Delhi - 1 along with a copy of Appendix-II instructions for Rounding Off Transactions in Government Accounts (Rule-17 of Receipts and Payments Rules, 1983), is communicated for information and necessary action.

(Issued from file No. III/20/12/2001-RA)

(R. VICTOR THIYAGARAJ)

ADDITIONAL COMMISSIONER (P&V)

As per mailing list

(Both Trade & Department)

No. Coord-Exp./R&P Rules/2001-02/53

Office of the

Pr. Chief Controller of Accounts

Central Board of Excise and Customs

AGCR Building, 1^st Floor

New Delhi

OFFICE MEMORANDUM

SUB. : Rounding off the transaction of CBEC to the nearest rupees.

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Review of Accounts of the department, has revealed that many transactions are still being carried out in paise.

As per Rules 17 Appendix - II to CGA's R&P Rules, transaction of Govt. involving rounding off 50 paise & above be rounded of to next higher rupee & less than 50 paise to be ignored (w.e.f. 01.04.87).

It is therefore once again reiterated that PAOs should not accept any claim in paise in order to facilitate differences in Accounts at various stages. Necessary instruction to round off the transaction to nearest as per Rule 17 Appendix - II of Receipt & Payment Rules may be issued to all DDOs & Commissionerates order intimation to the undersigned.

Dy. Controller of Accounts (Coord)

APPENDIX - II

INSTRUCTIONS FOR ROUNDING OFF TRANSCATIONS

IN GOVERNMENT ACCOUNTS

(See Rule 17)

The following transactions of Government involving fractions of a rupee shall be brought to account by rounding off to the nearest rupee (fraction of 50 paise and above to be rounded off to the next higher rupee and fraction of less than 50 paise to be ignored):-

(1) Personal claims of Government servants and pensioners:-

(a) All entitlements due to an individual employee by way of H.R.A./D.A./T.A., etc., and all Inner column's deductions from salary bills on account of P.L.I./Licence Fee/Taxes, etc., including book transactions shall be rounded off in whole rupees.

(b) In the case of Travelling Allowance bills, the rounding shall be done only at the last stage and not in respect of each item, e.g., Railway fare, Mileage and Daily Allowance, comprising the claim of an individual.

(c) Interest on loans and advances to an employee which is computed as a percentage of base amount and its recovery is effected in installments shall be made in whole rupee.

NOTE 1. - In the case of emoluments fixed by law, amounts which are in fraction of a rupee shall be rounded off to the next higher rupee.

NOTE 2. - Payment on account of Pension/Relief on Pension/D.C.R.G./Commuted value of Pension shall be rounded off to the next rupee.

(d) All Government transactions, whether involving actual receipts/payments or book adjustments, involving fractions of rupee shall be in whole rupees.

2. All transactions of P.A.Os/Banks through Cheques and Challans.

3. Transactions between one Government and another or between two Departments of the same Government.

4. Amounts converted into Indian currency from Sterling or other foreign currencies.

5. Reserve Bank remittances, other than those of sums representing dues fixed by or under any law or under any contractual obligation of the Government.

Sum representing dues fixed by or under any law shall always be rounded off to the next higher rupee.

6. Deposits and receipts other than those which are fixed by or under any law or are specially exempted by the Government from the operation of this Rule.

7. The only type of transactions which have to involve paise would be cash transactions for petty purchases or sales which are reflected in a primary record like Cash-book. Instructions for rounding off of such transactions are given in the Annexure to this Appendix.

2. This amendment takes effect from 01.04.1987.

ANNEXURE

(i) Petty cash payments for local purchases are met out of permanent cash imprest available with the Head of Office and recoupment bill duly supported by sub-vouchers (where necessary) is required to be preferred periodically to the Pay and Accounts Officer for replenishment of the imprest. As far as possible, suppliers should be persuaded to co-operate in rounding off the amount payable to them on each occasion to the nearest rupee. In exceptional cases where payment of paise cannot be avoided, the total of the sub-vouchers sought to be recouped would included paise also. Nevertheless, the recoupment bill shall be submitted to the P.A.O. for the whole rupee portion only. However, for the purpose of balancing the transactions in the main Cash-book as well as in the petty Cash Book, D.D.O. will (a) indicate the actual amount received in recoupment of the permanent advance; (b) record therein the unrecouped paise as an item of "rounding off of transactions; and (c) carry it over to be claimed through the subsequent recoupment bill by giving particulars of the bill in which this amount was short-received. Illustrative examples are given in proforma A & B for guidance.

(ii) In the case of receipts arising out of sale of waste papers or old news papers, periodicals, condemned furniture, etc., the amounts to be realized should be rounded to the nearest rupee and not include paise in the sum total of the transactions with any party for which a single receipt is given so that the receipts are credited into Government account in whole rupees only.