Financial Management

Transcription

1 Financial Management of Panchayat Samiti State Institute of Panchayats and Rural Development, Kalyani, Nadia, West Bengal Prepared by Dipyaman Majumder, Faculty Member

2 Reference Act: The West Bengal Panchayat act, 1973 Reference Rule: The West Bengal Panchayat (Zilla Parishad and Panchayat Samiti) Accounts and Financial Rules, 2003 (last amendment No. 2799/PN/O/V/1R-1/2002(Pt-III) dated the 9 th July, 2008) The funds of the Panchayat Samiti [u/s-132 & u/r-4(2)] are kept on Treasury (in an account) and Bank (in separate accounts) [u/r-4(3) & 4(4)]. Receipt and Payment will change the fund balance and accounting & other related official works will then initiated and disposed of accordingly. Fund Receipt at Bank Account: Receipt of Fund Date of Receipt in cheque: deem to same date[u/r-7(2)] Date of receipt in S.B. A/C: Date of Updation Report: Cash Book, GL, Subsidiary CB, Cash Analysis, etc. e-transfer Bank A/C IFMS Entry Credit Voucher (F-6) Cheque Deposited Bank Pink Colour Order No. R-9(3) Sign of Cashier/Acct Sign of DDO Verification Report Cheque shall be entered in Cash Book on the date of receipt of the cheque. If, however, on the later date, the cheque is dishonoured by the Bank, amount along with Bank Charges to be credited in the Cash Book showing that payment has not been done. Necessary steps shall be taken along with. [R-7(2)] For collection of cheque authorization has to be given. Supervision has to be there for conversion of Order to Account of fund. Try to maintain accounts with IFMS generated Credit Voucher (not manual) in Pink Paper along with Order(s). Page 1 of 9

3 Fund Receipt at Treasury: Own Fund of the Panchayat Samiti lies with the Treasury. Beside this many other funds also is there. In case of Own Fund, funds mainly collected by the office of the Panchayat Samiti and in case of other funds, it is given by other authority. Process Flow: Treasury Funds (Local Fund A/C) Cash Cheque Draft Own Fund Collected at HQ Outside HQ Scheme Fund Cheque R-21(8) Allotment R-5 Form 2 Form 1 Bill Challan F-3 Challan (F-3) Bill Extract R-7 Treasury Synopsis TR Form No-31 Treasury Linked Bank (SBI)(except allotment) Treasury Order BTR IFMS Entry Verification CV (F-6) Report Signature of Cashier & DDO Form Cashier s Receipt (Form-2) shall be counter signed by DDO if amount exceeds Rs [R-5(3)] Collection outside HQ shall be deposited to Cashier upon receiving a Form 2. [R-5(6)] Maximum custody limit of collected fund: Rs for one day. [R-5(1)] No expenditure from collection without remitting to fund in full. [R-5(2)] For selling Tender Forms to agency it is not necessary to grant separate receipt. [R-94] Page 2 of 9

4 Payment For contractors Bill checking with MB must be done. Before Sanctioning a) Administrative Approval, b) Technical & c) Expenditure Sanction must be checked. [R-74-79]. Scheme file may be constructed containing these documents. No charge shall be drawn by DDO unless it is specially sanctioned by the competent authority. [R-50(e)] Deductions (if applicable) must be done from each bill at the time of Passed for Payment. Deducted amount shall be transferred to their respective G/L from the Scheme Fund following the Double Entry System of Accounting. For IT and VAT deductions certificate must be given to the incumbents and returns will have to be submitted in due course. Special attention should be given in this regard. All expenditure out of PS Fund shall be made under Authorization of PS or Sthayee Samiti. For emergent situation EO may incur or commit to incur on obtaining approval of the Sabhapati. The decision shall be placed for consideration in the next meeting of PS or Sthayee Samiti. [R-6] Payment from Bank account * Deduction: 1. IT-1% 2. VAT-3% 3. Labour Cess-1% 4. Security Deposit-10%[R-103] Verification Report/ Books of A/C Bill Certificate Sanction by EO Passed for Payment* IFMS Entry Debit Voucher (F-7) Sign of DDO & ors R-9 R-14 Passed for Payment: To whom From which Fund Amount Mode (cash/ cheque/a/c payee cheque) C/B (F-9) S C/B (F-12) G/L (F-13) R-22(3) Cheque Issue Payment Upto Rs. 500-Cash Rs Cheque Rs.2001 or more-a/c Payee Cheque [R-6] Page 3 of 9

5 Payment from Treasury account * Deduction: 1. IT-1% 2. VAT-3% 3. Labour Cess-1% 4. Security Deposit-10%[R-103] Bill Certificate Sanction by EO R-14 Passed for Payment* IFMS Entry Verification Report/ Books of A/C Debit Voucher (F-7) Sign of DDO & ors R-9 Cheque Issue Advice Treasury Return & Payment In case of Treasury Accounts DV, issued cheque with an advice shall be sent to treasury. After authentication by treasury the same may be paid to the incumbent or self cheque is encashed from respective Treasury Linked Bank (SBI). For Treasury Account there is no provision for maintenance of Subsidiary Cash Book as like Bank account. In case payment made through Cash, Self cheque is to be issued. For the treasury accounts amount of self cheque has to be transferred in Cash-in-Transit G/L.[ Liquid Cash Book (F-31)R-22(4)] Vetting Power Earth Work: NS-3.0 lakh, SAE-4.5 lakh, AE-8 lakh, EE- 45 lakh, SE- 2 Crore Other Work-NS- 1.5 lakh, SAE- 3.5 lakh, AE- 8 lakh, EE- 45 lakh, SE- 2 crore Ref: 6853-RD (JRY)/13E-9/2000, 01/10/2012 Page 4 of 9

6 Cheque Cancellation of Cheque: Cancellation Not in possession Still in possession Still not encashed Already encashed Cheque is to be cancelled Request TO/ BM to stop payment. On ascertaining paymentstop make necessary entry in Books of A/C Direct Payee to refund within a period Failing in refund take legal action Record in the counterfoil & other books of account R-26 Cheque Lapsed: Lapsed R-27 Non Delivery Failure of payee to encash Old Cheque: Lapsed New Cheque: Issued In case of LF A/C treasury be communicated Old Cheque: preserved with counter foil No & Dt of L-Chq to be recorded in C/F of N-Chq No & Dt of N-Chq to be recorded in C/F of L-Chq C/B Entry Page 5 of 9

7 Cheque Lost If a valid cheque is lost, the fact has to be notified to the treasury and Treasury linked Bank/ Bank promptly. A certificate has to be obtained from the Manager of concerned Bank regarding non drawal till date and restriction over future drawal for issuing further cheque in lieu of lost cheque. And the certificate has to be preserved with the counter foil. Procedure for [Cancellation]/ lapsed cheque should be followed for record keeping. [R-27(3)] N.B.: Treasury cheque remains valid for 3 months of issue, but cheque shall not be paid after 30 days of issuance. [R-25(18)] A cheque if not encashed within 3 months or 6 months as the case may be, such cheque shall be cancelled. [R-27(4)] Reference: The Income-tax Act, 1961 TDS (Tax Deducted at Source): Income Tax Salary of Employee as per the rate prescribed by the authority. (u/s-192) Payment more than Rs. 30, u/s-194(c) Aggregate payment in a F.Y. exceeding Rs. 75, Rate of IT other than Salary Payment- 1% (HUF/ Individual) & 2% (Other) Deposited on or before 7 days from the end of the month (Challan No. 281) CIN (Challan Identification Number) must be preserved. CIN comprise the following BSR code: 7 digits Challan Sl No: 5 digits Certificate to be issued to deductee. Date: dd/mm/yyyy o Salary- Form 16 (Once in a FY for each TAN by 31 st May) o Other than Salary-Form 16A (Quarterly for each PAN & TAN within 15 days from the due date of furnishing return) Some Abbreviation with Banking Sector: BSR: Basic Statistical Return MICR: Magnetic Ink Character Recognition RTGS: Real Time Gross Settlement (Min. 1 lakh) NEFT: National Electronic Fund Transfer (any amt.) IFSC: Indian Financial System Code Page 6 of 9

8 Income Tax Online Return Submission: Prescribed Forms: Nature of Deduction TDS from Salary TDS from Payments other than Salary Forms used 24Q 26Q Due Date of Filing Return Online: Quarters ending on Due dates for TDS return Please prepare Reconciliation Statement at the end of month for Bank/ Treasury A/C in Form 11. [R-21(12)] 30 th June 15 th July 30 th September 15 th October 31 st December 15 th January 31 st March 15 th May e-filing of Tax Return (u/s-206): e-tds returns can be filed at any of the TIN-FC opened by the e-tds Intermediary for this purpose e-filing administrator: DG IT (system) e-tds intermediary: National Securities Depository Ltd., Mumbai Addresses of the TIN FCs are available on or at Process of issuance of TDS Certificate Registration in TRACES Portal Download Form 16A Download Form 16 (Part A) with 7 character TDS certificate number. Part B of Form 16 be prepared manually and issued to incumbent concern along with Part A. Page 7 of 9

9 Value Added Tax Ref: West Bengal Value Added Tax Act, 2003 Rate: Status of a contractor Rate applicable w.e.f. 01/04/2013 When Contractor is a registered dealer When contractor is a dealer not registered under the Act 3% 5% Deposition: Account Head & Account Code Challan of the Department: WB Form No. 2380G Certificate: Certificate of deduction from payment for execution of works contract under subsection (1) of section 40 of the West Bengal Value Added Tax Act, 2003 within 15 days from the date of deposition of the Tax. [Form 18] Scroll: Scroll for deposit of the amount deducted at source under sub-section (1) of section 40 of the West Bengal Value Added Tax Act, [Form 19] Cess Reference Order No. 853-F, dated 01/02/1996 Scope of deduction: Building and other Construction Work Rate: 1% of the cost of the construction work. Remitted to: The West Bengal Building and other Construction Workers Welfare Board Mode: Crossed Cheque or Demand Draft along with Challan drawn in favour of the Board. Address of the Board: Office of the Labour Commissioner, WB, 1 K S Roy Road (11 th Floor), Kolkata Page 8 of 9