6th pay commission for Autonomous Bodies

GoI vide OM No 7/23/2008 E-III A Dated 30/09/2008, issued the guideline for extension of 6th Pay commission recommendation to Autonomous Bodies
link here

Income Tax rate AY 2008-09 and AY 2009-10

For detail Please see Link

TDS rate for FY 2008-09

Manual for Guidence

Ministry of Finance, GoI had issued some manuals/ models for guidance in framing detailed rules/ procedure & detailed instructions. A review of these instructions may helpful in carrying out our duties. These are
(1) Manual of policies & procedure works contract
http://finmin.nic.in/the_ministry/dept_expenditure/GFRS/Structure%20CP%20WG.pdf
(2) Manual of policies & procedure purchase of goods
http://finmin.nic.in/the_ministry/dept_expenditure/GFRS/MPProc4ProGod.pdf
(3) Manual of policies & procedure of employment of consultant
http://finmin.nic.in/the_ministry/dept_expenditure/GFRS/MPProc4ProCons.pdf
(4) Bidding document for works
http://finmin.nic.in/the_ministry/dept_expenditure/GFRS/BiddDocWorks.pdf
(5) Public procurement- A reference paper
http://finmin.nic.in/the_ministry/dept_expenditure/press/notNo8(3)-E.II(A)0-02.pdf

Guidelines for the Principal Employer in respect of Labour contract.

1 An employee of the Lab should not be made as a contractor (Sham/ False contract). Go for an independent contractor. As far as possible, the preference should be given to a contractor, who has got the contract in similar concern of the same type.
2 If the contractor has similar type of contract in different concerns, then he should try to transfer the employees from one establishment to another establishment. Hence the contract employees can be transferable. This is a with a view that the contractor should not employ the contract workmen in the same establishment for not more than a certain stipulated period.
3 The contractor shall select and appoint the workmen without any interference of the Lab. The supervision and control on the workmen of contractor will be solely by the Contractor. Hence the Lab will not have supervision and control over the contractor’s workmen.
4 The contractor shall determine the mode, method and manner of working. The Lab shall not interfere in regard to the same.
5 The Contractor shall employ the workforce according to his requirement but he shall not in any case exceed the number of workmen shown in the licence or do any other work what is not given in the licence.
6.1 Similarly Employer shall register itself under the Contract Labour (Regulation & Abolition) Act, 1970.
6.2 The Contractor shall submit monthly printed bill to the Lab for payment of the work done by him by 1st day of following month and the printed bill should be signed under the Rubber Stamp.
6.3 The Employer has to ensure that the Contractor is paying the workmen minimum wages and the payment to them is made on or before 7th of every month in presence of the representatives of the Lab who shall also sign on the muster/register.
6.4 The Contractor shall deduct the income tax as per income tax act or any other law applicable from time to time from the payment made to his workmen.
6.5 The Contractor shall pay his own taxes as per provisions of statutory acts.
6.6 The Contract shall be given for the job to be done and rates of job shall be paid to contractor as per mutual agreed basis.
6.7 The Lab shall ensure while making payment to the contractor that the contractor has paid the employees’ provident fund and ESI contributions deductions both of employees and of contractor on time (along with copy of challan paid).
7 The Lab shall check up that the Contractor renews his licence from time to time.
8 The Contractor shall decide about the disciplinary action to be taken against his employees in case of any acts of misconducts committed by his employees.
9 The Lab shall see that if possible the Contractor has obtained separate code numbers of Employees State Insurance and Employees Provident Fund under the respective Acts.
10 The Contractor shall maintain necessary records such as identical card. Attendance register and/or card and other statutory registers through his staff and not by the staff of the Lab.
11 The contract workmen shall do the specific work of the contract and not any other work of the Lab.
12 Contract Labourers are not to be employed for doing perennial and permanent nature of jobs of the Lab.
13 Contract Labourers should not be employed for doing any main activity of the Lab.
14 Do not pay from the regular fund of Lab
15 If possible insert following clause in NIT/ Contract w.r.t LIABILITIES, CONTROL ETC. OF THE PERSONS DEPLOYED
(a) The Contractor shall depute a co-odinator who would be responsible for immediate interaction with the Lab so that optimal services of the persons deployed by the agency could be availed without any disruption.
(b) It will be the responsibilities of the Contractor to meet transportation, food, medical and any other requirements in respect of the persons deployed by it (Agency) in this Lab and this Lab will have no liabilities in this regard.
©. For all intents and purposes, the Contractor shall be the “Employer” within the meaning of different Labour Legislations in respect of Persons so employed and deployed in this Lab. The persons deployed by the Contractor in the Lab shall not have claims of any Master and Servant relationship nor have any principal and agent relationship not have any principal and agent relationship with or against Lab.
(d).The Contractor shall be solely responsible for the redressal of grievances / resolution of disputes relating to person deployed. This Lab shall, in no way, be responsible for settlement of such issues whatsoever.
(e) This Lab shall not be responsible for any damages, losses, claims, financial or other injury to any person deployed by service providing agency in the course of their performing the functions/duties, or for payment towards any compensation.
(f) The persons deployed by the Contractor shall not claim nor shall be entitled to pay, perks and other facilities admissible to casual, ad hoc, regular / confirmed employees of this Lab during the currency or after expiry of the contract.
(g) In case of termination of this contract on its expiry or otherwise, the persons deployed by the Contractor shall not be entitled to and will have no claim for any absorption nor for any relaxation for absorption in the regular / otherwise capacity in this Lab

CONTRACT LABOUR IN INDIA

The system of employing contract labour is prevalent in most industries in different occupations including skilled and semi skilled jobs. It is also prevalent in agricultural and allied operations and to some extent in the services sector. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a contractor. Contract workmen are indirect employees; persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment. Contract labour has to be employed for work which is specific and for definite duration. Inferior labour status, casual nature of employment, lack of job security and poor economic conditions are the major characteristics of contract labour. While economic factors like cost effectiveness may justify system of contract labour, considerations of social justice call for its abolition or regulation.

The condition of contract labour in India was studied by various Commissions, Committees, and also Labour Bureau, Ministry of Labour, before independence and after independence. All these have found their condition to be appalling and exploitative in nature. The Supreme Court of India in the case of Standard Vacuum Refinery Company Vs. their workmen (1960-II-ILJ page 233) observed that contract labour should not be employed where:

(a) The work is perennial and must go on from day to day;

(b) The work is incidental to and necessary for the work of the factory;

(c) The work is sufficient to employ considerable number of whole time workmen; and

(d) The work is being done in most concerns through regular workmen.

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

The concern for providing legislative protection to this category of workers, whose conditions have been found to be abysmal, resulted in the enactment of the Contract Labour (Regulation and Abolition) Act, 1970.

OBJECTS AND PURPOSES OF THE ACT

The Contract Labour (Regulation and Abolition) Act, 1970 was brought on the Statute Book to regulate the employment of Contract Labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

APPLICATION

The Contract Labour (Regulation and Abolition) Act, 1970 and the Contract Labour (Regulation and Abolition) Central Rules, 1971 came into force on 10.2.71.The constitutional validity of the Act and the Central rules were challenged before the Supreme Court in Gammon India Ltd. Vs. Union of India 1974-ILLJ-480. The Supreme Court upheld the constitutional validity of the Act & Rules and held that there is no unreasonableness in the measure. The Act & Rules were enforced w.e.f. 21.03.1974.

The Act applies to every establishment in which 20 or more workmen are employed or were employed on any day on the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. It does not apply to establishments where the work performed is of intermittent or seasonal nature. An establishment wherein work is of intermittent and seasonal nature will be covered by the Act if the work performed is more than 120 days and 60 days in a year respectively. The Act also applies to establishments of the Government and local authorities as well.

APPROPRIATE GOVERNMENT

The jurisdiction of the Central and State Government has been laid down by the definition of the ‘Appropriate Government’ in Section 2(1)(a) of the Act, as amended in 1986. The Appropriate Government, in respect of an establishment under the Contract Labour (Regulation and Abolition) Act, 1970 is the same as that in the Industrial Disputes Act, 1947.

As per the interpretation given by the Supreme Court, through its judgement dated 30.08.2000, in Steel Authority of India Limited and Ors Vs. National Union Water Front Workers & Ors., the ‘appropriate government’ in relation to an establishment would be the Central Government if (i) the concerned Central Government company/ undertaking or any undertaking is included by name in clause (a) of Section 2 of the Industrial Disputes Act, or (ii) any industry carried on by or under the authority of Central Government or by a railway company, or (iii) any such controlled industry as may be specified in this behalf by the Central Government, otherwise in relation to any other establishment, the Government of the State in which that other establishment is situated, will be the appropriate government.

REGISTRATION OF ESTABLISHMENT AND LICENSING OF CONTRACTORS

The establishments covered under the Act are required to be registered as principal employers with the appropriate authorities. Every contractor is required to obtain a licence and not to undertake or execute any work through contract labour except under and in accordance with the licence issued in that behalf by the licensing officer. The licence granted is subject to such conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as laid down in the rules.

WELFARE AND HEALTH OF CONTRACT LABOUR

The Act has laid down certain amenities to be provided by the contractor to the contract labour for establishment of Canteens and rest rooms ; and arrangements for sufficient supply of wholesome drinking water, latrines and urinals, washing facilities and first aid facilities and have been made obligatory. In cases of failure on the part of the contractor to provide these facilities, the Principal Employer is liable to provide the same.

PAYMENT OF WAGES

The contractor is required to pay wages and a duty is cast on him to ensure disbursement of wages in the presence of the authorised representative of the Principal Employer. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same. The contract labour who performs same or similar kind of work as regular workmen, will be entitled to the same wages and service conditions as regular workmen as per the Contract Labour (Regulation and Abolition) Central Rules, 1971.

PENAL PROVISIONS

For contravention of the provisions of the Act or any rules made there under, the punishment is imprisonment for a maximum term upto 3 months and a fine upto a maximum of Rs.1000/-.

OTHER PROVISIONS

The Act makes provision for the appointment of Inspecting staff, for maintenance of registers and records and for making Rules for carrying out the purpose of the Act. In the central sphere, officers of the CIRM have been appointed as Inspectors.

PROHIBITION

Apart from the regulatory measures provided under the Act for the benefit of the contract labour, the ‘appropriate government’ under section 10(1) of the Act is authorised, after consultation with the Central Board or

State Board, as the case may be, to prohibit, by notification in the official gazette, employment of contract labour in any establishment in any process, operation or other work. Sub-section (2) of Section 10 lays down sufficient guidelines for deciding upon the abolition of contract labour in any process, operation or other work in any establishment.

The guidelines are mandatory in nature and are:-Conditions of work and benefits provided to the contract labour.

• Whether the work is of Perennial nature.

• Whether the work is incidental or necessary for the work of an establishment.

• Whether the work is sufficient to employ a considerable number of whole-time workmen.

• Whether the work is being done ordinarily through regular workman in that establishment or a similar establishment.

The Central Government on the recommendations of the Central Advisory Contract Labour Board, have prohibited employment of contract labour in various operations/ category of jobs in various establishments. So far 48 notifications have been issued since inception of the Act.

EXEMPTION

The ‘appropriate government’ is empowered to grant exemption to any establishment or class of establishments or any class of contractors from applicability of the provisions of the Act or the rules made thereunder on such conditions and restrictions as may be prescribed. Nine notifications granting exemption to establishments in exercise of this power in the Central sphere have been issued.

ENFORCEMENT

In the Central sphere, the Central Industrial Relations Machinery (CIRM) have been entrusted with the responsibility of enforcing the provisions of the Act and the rules made thereunder, through Inspectors, Licensing Officers, Registering Officers and Appellate Authorities appointed under the Act.

Regular inspections are being conducted by the Field Officers of the CIRM and prosecutions are launched against the establishments, whenever violations of the Act/Rules/notifications prohibiting employment of contract labour are detected. From time to time, instructions/directions have been issued to the field officers of CIRM and State Government for proper implementation of the Act.

IMPORTANT JUDGEMENTS OF THE SUPREME COURT.

Three judgements delivered by the Supreme Court in the cases of Gujarat State Electricity Board Vs Union of India, Air India Statutory Corporation Ltd. & Ors Vs United Labour Union & Others, and Steel Authority of India Ltd. & Others Vs National Union of Waterfront Workers and others on 09.05.1995, 06.12.1996 and 30.08.2001 respectively, are landmark judgements.

In Gujarat State Electricity Board case, inter-alia, the Supreme Court recommended that the Central Government should amend the Act by incorporating a suitable provision to refer to industrial adjudicator the question of the direct employment of the workers of the ex-contractor in the principal establishments, when the appropriate Government abolishes the contract labour.

In Air India Statutory Corporation case, the Supreme Court held that though there exists no express provision in the Act for absorption of employees in establishments where contract labour system is abolished by publication of the notification under section 10 (1) of the Act, the principal Employer is under statutory obligation to absorb the contract labour. The linkage between the contractor and employee stood snapped and direct relationship stood restored between principal employer and contract labour as its employees.

The Supreme Court in the case of Steel Authority of India Ltd. Vs National Union of Waterfront Workers & Others and others have held that neither Section 10 of the Act nor any other provision in the Act whether expressly or by necessary implication provides for automatic absorption of contract labour on issuing a Notification by the appropriate Government under sub section (1) of Section 10 prohibiting employment of contract labour in any process or operation or other work in any establishment. Consequently the Principal Employer cannot be required to order absorption of the contract labour working in the concerned establishment. The judgement in Air India’s case was over-ruled prospectively.

Vacancy at CBSE

Accrual Accounting in CSIR

CSIR has introduce Accrual Accounting in 2004 and tries their level best to educate about its concepts & implementation but there are still misconception particularly at the lower level of cadre. I had came across two articles from Government Accounting Standards Advisory Board (GASAB) which beautifully elucidate Accrual accounting standard and its implementation in India.
(1) PRIMER ON ACCRUAL ACCOUNTING
http://www.gasab.gov.in/pdf/Primer151107.pdf
(2) Operational Framework of Accrual Basis of Accounting in Governments in India
http://www.gasab.gov.in/pdf/OperationalFramework%20_Final_260207.pdf

Vigilance as a Management Function – Leveraging Technology Balwinder Singh, Addl.Secretary, CVC

Vigilance is not a stand-alone activity. It has to be seen as part of the overall risk management strategy of an organization wherein the structures, systems and processes are built in such a manner so as to prevent leakages which adversely affect productivity and profitability. A number of organizations both in public and private sector are re-engineering their processes by leveraging information technology. It will be in the organizational interest that when they are reorganizing business processes they should identify the likely risks like fraud, corruption, other malpractices and build in the required risk management tools in the new processes. Recently a write-up has appeared in the Economic Times under the heading “Fuel for e-commerce at HPCL”. This article explains how HPCL has networked all its petrol pumps in and around Mumbai for the purposes of inventory control and supply chain management. The same process also indirectly helps in curbing adultration and under measurement. These malpractices are in turn connected with corruption. The system automatically detects any tampering with the fuel dispensers. It enables the company to monitor every outlet. Similarly providing global positioning system on the tankers for transporting fuel, the management can detect diversion of tankers to dubious destinations. This technology while providing solution for efficient supply chain management also helps in risk management thus strengthening the internal vigilance. There is need to integrate vigilance activity as a part of overall risk management strategy which in turn has to be integrated in the main stream operations of organizations.

The Central Vigilance Commission has been wrestling with the idea of identifying areas where generic solutions to the problems of vigilance administration can be applied across wide spectrum of government organizations. A number of areas have been identified where use of information

technology can bring efficiency, economy as well as transparency thus curbing corruption. Some of these ideas are as follows:-

E-Procurement

It has been the experience of a large number of organizations worldwide both in public and private sectors that e-procurement can bring in economy and efficiency in the procurement of goods, works and services. Apart from these benefits, the process also brings in greater transparency, thus reducing opportunities for corruption. Some of the State Governments like Andhra Pradesh, Karnataka as well as some Public Sector Undertakings like SAIL are already making use of e-procurement systems. The Central Vigilance Commission has issued a directive that all Govt. organizations over which the Commission has jurisdiction should publish their tenders and complete bid documents along with the application forms on the website. This is the first step towards e-procurement and would help in curbing mal-practices prevailing in various Govt. organizations where competition is sought to be restricted.

E-Payment

Another directive of the Central Vigilance Commission regarding levarging technology pertains to introducing e-payment. Here again, the intention is to bring economy and efficiency, while at the same time, reducing corruption. The banking industry in the last one decade has made rapid

technological advances in India. The directive of the Central Vigilance Commission for introducing e-payment is to levarge these technological advances in banking sector for the benefit of rest of the governmental set up. This system will help in significantly reducing transaction costs involved in making payments by way of cheques and sending the payment through couriers. It will also curb corruption which accompanies handing over cheques to

contractors, suppliers and others like persons receiving refunds from income tax and other departments.

Apart from the above mentioned two specific directives which the Central Vigilance Commission has already issued there are very many other areas where technology can be leveraged simultaneously for efficiency, economy and corruption control. The key idea being that risk management tools are made integral part of the main business processes. For example, there are frequent cases of frauds in availing various employee benefits like medical expenses, LTC, TA/DA etc. The accounting softwares can be built in such a manner that the computer system generates ‘exception report’ and gives alerts wherever there are significant deviations from certain benchmarks and norms. Similarly, the same accounting software system can make inter unit/inter location comparisons of expenditure on these items. Similarly, softwares can be
developed with regard to procurement with in built features for making inter unit/inter office comparisons of rates and consumption patterns. Extensive use of website can be made both as a tool for communication with the stake holders as well as for curbing corruption. Right to information and transparency are the biggest tools for fighting corruption and website as a

tool for such communication can have very extensive application across the entire spectrum of Govt. activity. Contractors and suppliers can know where their bills are held up, applicants for passport can know where their passport application is held up or whether police is taking abnormally long time in issuing NOC, beneficiaries of public distribution system can know whether wheat, rice and sugar is being diverted by the ration shop owner. Municipal corporations and other civic agencies can get feedback from public whether repairs to roads or drainage pipes is actually being carried out or only fake bills are being prepared without actually undertaking the works. Some Govt. organizations have already taken initiatives in this direction but the complete potential of website/portal as a tool for fighting corruption is yet to be made.

In addition to generic issues pointed out above, there can be a large number of organisation specific solutions where risk management tools can be integrated in the business processes. Customs & Central Excise, Income Tax, Employee Provident Fund Organisation and certain other organizations are learnt to have already undertaken such exercises in their computerization projects and business process re-engineering efforts. The aim is to gradually

integrate preventive vigilance in the business processes and reduce our dependence on a complaint driven vigilance administration which is the present scenario.

***

Revised list of seniority of Asst. (F&A) Gr I after JCM decision w.r.t Rationalization of administrative cadre scheme

The JCM accepted the earlier committee decision and decided that the inter-se seniority of erstwhile Asst. (G) Gr I staff among themselves as it was existed prior to their switch over , will be maintained in the recipient cadre i.e Finance & Accounts cadre.
For detail : http://www.csir.res.in/CSIR/External/heads/aboutcsir/announcements/cir_list.pdf

ISTM Training courses related to Accounts

Financial Courses

21	WoPF	Workshop on Pay Fixation	Officers dealing with Pay Fixation Cases	3-Days	13/10/2008	15/10/2008	Shri Yogesh Dwivedi
22	PMG-1	Purchase Management in Govt	Staff Dealing with Purchase in Government Offices	3-Days	15/10/2008	17/10/2008	V.P.Sharma
23	FR	Financial Rules	Officers working as HOD/DDO	2-Weeks	08/12/2008	19/12/2008	Shri Nafe Singh
24	PMG-2	Purchase Management in Govt	Officers Dealing with Purchase in Government Offices	3-Days	10/12/2008	12/12/2008	Smt Vinod Jindal
25	C&A	Cash & Accounts	Assistants or UDCS with 5 years of Service	9-Weeks	22/12/2008	21/03/2009	V.P.Sharma

For details :- http://istm.gov.in/IstmCalendar.asp#9

Training on Cash and Accounts for Assistants (F & A)

HRDC, Ghaziabad is organising a training on Cash and Accounts for Assistants (F & A) from 17-22 November 2008 at HRDC, Ghaziabad.
For detail contact
Dr. J. Swarup jswarup1@csirhrdc.res.in

Government initiative to encourage North-East Tourism

Government of India recently introduced LTC facility to North-East by Air. Kindly overview the following memorandums in order to arrive at correct auditing perspective
(1)Clarification regarding reimbursement of fare in respect of travel by air to visit NER
http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/CCS_LTC_Rules.pdf
(2)CCS (LTC) Rules, 1988 - Relaxation for travel by air to visit
NER.
http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/31011_4_2007-Estt.(A).pdf
(3)LTC to central government employees-travel by tour packages operated by IRCTC
http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/31011_6_2002-Estt.(A).pdf
(4)Regulation of journey by private airlines while availing LTC
http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/31011_2_2006_Estt.(A).pdf
(5)Regulation of journey by private airlines while availing LTC
http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/LTC_Private_Airlines.pdf
(6)Concession offered to senior citizen by Indian Airlines
http://www.indianairlines.in/downloads/srcitizen.pdf

Vinod Ojha said...

A welcome step by the Govt. of India and bonanza for its employees particularly those who are not entitled for air travel as per TA/LTC rules.

The Govt. of India employees should avail this opportunity to fulfill their desire to travel by air and also the development of north-east region which is the basic purpose of the scheme.

Employees should also exercise due care to avail of the various discounted fare schemes offered by different airlines to reduce financial burden on the exchequer resulting in sustainability of such schemes.

हिन्दी में काम करे

हम सभी लोग जानते है कि भारत सरकार सरकारी काम काज में हिन्दी को बढ़ावा देने के लिए तरह तरह योजनाओ को बढ़ावा दे रही है उसमे से एक है मूल कार्य में हिन्दी का प्रयोग या हिन्दी में लिखना या टाइप करना .
इसके लिए इंग्लिश कीबोर्ड पर हिन्दी फोंट्स को खोज कर टाइप करना एक दुरूह कार्य है. इस काम को आसान बनने के लिए गूगल के दो उत्पादों का इस्तेमाल किया जा सकता है
१) गूगल ट्रांसलेशन :- इससे इंग्लिश को हिन्दी में ट्रांसलेट कर सकते है
लिंक है http://translate.google.com/translate_t?hl=en#
२) गूगल इंडिक tranliteration :- इससे इंग्लिश फोंट्स पर टाइप कर हिन्दी में लिख सकते है
जैसे ये पूरी टाइपिंग कि गए है
लिंक है http://www.google.co.in/transliterate/indic