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Chapter- 10 Capital Accounts

 

Introduction


1. Expenditure incurred with the object of acquiring tangible assets of a

permanent nature or enhancing the utility of existing assets, shall broadly

be defined as capital expenditure. Subsequent, charges on maintenance,

repair, upkeep and working expenses, which are required to maintain the

assets in a running order as also all other expenses incurred for the day to

day running of the organisation, including establishment and administrative

expenses, shall be classified as Revenue expenditure. The Capital Outlay

of the Indian Postal Department is recorded under the Major Head

5201 Capital Outlay on Postal Services.


2. It shall be the responsibility of the administrative authorities, delegated

with procurement of capital goods to maintain such record of capital assets.

Head of Postal Accounts Offices and Sr. DDG (PAF) are responsible to

assist AS and FA to cause appropriate action to have a comprehensive

record of its assets and liabilities. Head of circles shall cause building up of

such records, their ongoing updation and also for the recording of

maintenance and optimum utilization of assets.


3. Registers of Land and Buildings are maintained by Heads of Circles as

prescribed in Rule 484 of the P&T Financial Handbook Vol. I. These

registers show the particulars as to the date of construction, floor area,

ownership, original value and addition etc; of all lands and buildings

in possession of the Department.


4. While conducting Internal Audit of units, it shal be verified about the

correctness of maintenance of such asset registers, updation, accounting,

availing of Input Tax Credit in relation to GST, with cross reference to

invoice or bills. It shall also verify at random that all charges under 5201

capital outlay, which are eligible for posting in the asset register, have been

correctly brought in and correct.


5. The PAO shall ensure that booking under scheme and non scheme,

debitable to 5201 capital outlay, are against the proper budget allotment

and the classification is done correctly and the assets have been brought to

asset register by following the procurement process in the application in

place.


6. Appropriate register to watch expenditure in 5201 capital outlay including

non scheme against budget allotment for the year be maintained by budget

section of PAO and any variation be reconciled immediately. The

responsibility of monthly reconciliation lies with Head of circle and Head

of Postal Accounts Offices concerned vide provisions of Rule 57 of GFR

2017.