KERALA ACCOUNT CODE: APPENDIX III

APPENDIX III

(See Article 29)

PRINCIPLES AND RULES REGULATING THE DISTRIBUTION OF
CERTAIN CHARGES AND RECEIPTS BETWEEN GOVERNMENTS

A. Introductory

B. Pay, Allowances, Pensions etc.

I. Incidence of Pay and Allowances, other than Leave Salaries
II. Incidence of Leave Salaries

III. Incidence of Cost of Passages
IV. Incidence of Pensions.
V. Incidence of Charges for Bonus in respect of Government servants who are employed on Bonus terms and who serve under more than one Government.
VI. Incidence of Government Contributions to the Indian Civil Service Family Pensions.
VII. Incidence of Government Contribution to the Indian Civil Service (Non-European Members) Provident Fund.
VII-A. Incidence of Family Pensions in respect of Armed Forces Officers and of Civil Officers serving with the Armed Forces.

C. Other Charges

VIII. Incidence of Expenditure involved in Audit and keeping Accounts.
IX. Incidence of Grants of hand and Alienations.
X. Incidence of the Cost of Police Functions on Railways including the cost of protecting Railway Bridges.
XI. Incidence of the cost of (1) Forest surveys carried out by the Survey of India, and (2) Forest Maps prepared by that Department.
XII. Incidence of the Charges relating to the maintenance and Demarcations of and disputes over, Boundaries.

D. Receipts

XIII. Incidence of Leave Salary and Pension Contributions recovered in respect of Government servants lent on Foreign Service.

A. INTRODUCTORY

The rules regulating the incidence of pay, leave, passage and pension, etc., charges of Government servants as well as certain other charges and receipts between Governments which are set out in this Appendix are based on arrangements agreed between the different Governments and are therefore binding on all the Governments.

🆀Details to be given to Accountant General regarding the deputation of Govt. employees are explained in ... ..........of KAC - Vol.I

(A) Article 42 Annexure - I

(B) Art. 35 Appendix - B

(D) Art. 29 Appendix -III-A

Local Ruling

(1) A statement containing the following details should be furnished to the Accountant-General along with the sanction for deputation of State Government servant for service under the Government of India or any other State Government,—

(i) Name of the Government servant.
(ii) Date of Birth.
(iii) Designation (post held before transfer).
(iv) Scale of pay of the post and pay drawn under the Government.
(v) Head of account to which pay was debited before transfer.
(vi) Service Rules applicable.
(vii) Date of relief from State service.
(viii) Government to which deputed.
(ix) Transit period availed.
(x) Date of joining duty in the deputation post.
(xi) Transit pay sanctioned.
(xii) Actual pay sanctioned in the deputation post.
(xiii) Date and amount of next increment.
(xiv) Audit Officer to whom the debit on account of leave salary contribution should be passed on.

Information regarding the transit period taken by the deputationist and the date and hour of joining duty under the borrowing Government should be furnished to the Accountant-General as soon as the deputationist joins duty under the borrowing Government.

Note:—

The Service Books of the Officers sent on deputation should also be forwarded to the Audit Officer for noting the rates of leave salary contribution and details of annual adjustment so that there may not be any difficulty at the time of verification of pension papers.

🆀 A State Government Officer of P.W. Department was posted on deputation to a State Government owned Public Sector Undertaking. Who is the officer authorised to note the rates of leave salary contribution in his service book ?

(A) Head of Office, where the officer was working prior to deputation

(B) Head of Office of the Public Sector Undertaking

(D) Audit Officer

(2) Standard Terms of Deputation by Temporary Transfer of the State Government servants to other State Governments and the Government of India.

1. Period of deputation.—The deputation will be for a period of...................from.................... The deputation will commence on the date on which the officer hands over charge of his post under the Government of Kerala and will end on the date on which he assumes charge of a post under that Government.

2. Pay.—During the period of deputation Sri/Smt.............will be entitled to ascale of pay of `.................plus a deputation allowance of ….................

3. Dearness Allowance.—The officer will be entitled to dearness allowance under the rules of the Government of Kerala or under the rules of the borrowing Government according as he retains his scale of pay under the Government of Kerala or he draws pay in the scale attached to the post under the borrowing Government.

4. Local Allowances.—Local Allowances like House Rent Allowance, etc., will be regulated under the rules of the borrowing Government.

5. Joining time pay and transfer T.A.—His claims for travelling allowance, joining time and joining time pay both for joining the post on deputation and for re-joining the post under the Government of Kerala on reversion from the deputation post will be regulated under the rules of the borrowing Government. The expenditure on this account will also be used by the borrowing Government.

6. T.A. for journey on duty.—T.A. for journeys on duty while on deputation will be regulated under the rules of the borrowing Government.

7. Leave and pension.—During the period of deputations he will continue to be governed by the leave and pension rules of the Government of Kerala.

🆀 The payment of leave salary and allowances in respect of Earned Leave Surrendered by the State Government Employees on deputation to the Central Government will be the liability of whom?

A:-The State Government

B:-The Central Government

C:-Will be shared among both the Governments

D:-None of these

Correct Answer:- Option-A

Leave salary and pensionary charges will be allocated under the rules of incidence contained in Appendix III to the Kerala Account Code, Volume I. Leave salary contribution, where necessary, will be recovered at the rates prescribed in G.O. (P) 510/62/Fin., dated 30th October 1962 as modified by G.O. (P) 203/66/Fin., dated 13th May 1966.

The payment of leave salary and allowances in respect of Earned Leave Surrendered by the State Government Employees on deputation to the Central Government will be the liability of the State Government.

This amendment will take effect from 4-6-1971.

8. Extraordinary pension/gratuity.—The grant of extraordinary pension/ gratuity will be regulated in accordance with the rules of the borrowing Government in respect of the Government servants receiving injuries and dying during the period of deputation. The procedure laid down in the O.M. No. F.19 (23) EV (A)/64, dated 2nd August, 1965 of the Government of India, Ministry of Finance (Department of Expenditure) will be followed in the matter. But in cases where the extraordinary pension rules of the borrowing Government are found to be less advantageous than those of the lending Government the procedure prescribed in paragraph 1(i) of this O.M. should be deemed to have been relaxed and accordingly they should be dealt with in relaxation of the rules of the borrowing Government so as to allow the Government servants concerned or the members of their families the benefits admissible under the rules of the lending Government.

9. Provident Fund benefits.—During the period of deputation he will continue to subscribe to the Provident Fund of the Government of Kerala to which he was subscribing in accordance with the rules of the Fund.

In the case of deputation of a Government servant who is governed by the Contributed Provident Fund Rules, Government contribution for the period of deputation is payable by the borrowing Government.

🆀 In the case of deputation of a Government servant who is governed by the Contributory Provident Fund Rules, Government contribution for the period of deputation is payable by which Governments?

A:-The borrowing Government

B:-The Lending Government

C:-Central Government in any case

D:-None of these

Correct Answer:- Option-A

10. Medical concessions.—He will be entitled to medical attendance benefits under the rules of the borrowing Government.

11. Residential accommodation.—He will be entitled to residential accommodation in accordance will the rules of the borrowing Government.

Any matters not specifically covered by the above terms will be regulated by the relevant rule in this Appendix.

B. PAY, ALLOWANCES, PENSIONS, ETC.

1. Incidence of pay and allowances, other than leave salaries

Subject to any other arrangements which may be settled mutually between the Governments concerned, the incidence of transit pay and allowance including travelling allowances of a Government servant transferred from one Government to another will be regulated in accordance with the following principles:—

(i) when a Government servant is transferred permanently from one Government to another, his transit pay and allowances including traveling allowances shall be borne by the Government to which he is transferred.

(ii) when the services of a Government servant are lent by one Government to another the transit pay and allowances including traveling allowances while he is joining and leaving the new service shall be debited to the borrowing Government. This principle applies even in cases where the Government servant lent takes leave either before joining the borrowing Government or before joining the lending Government and holds good even in respect of joining time admissible to a Government servant returning from leave out of India of more than four month’s duration the term “four months” being interpreted to mean 120 days in the case of Government servants subject to the Revised Leave Rules. For this purpose officers of the Indian Medical Service employed under State Government should in all cases be regarded as lent to those Governments by the Central Government (Defence Department).

🆀 In the case of deputation of a Government servant who is governed by the Contributory Provident Fund Rules, Government contribution for the period of deputation is payable by which Governments?

A:-The borrowing Government

B:-The Lending Government

C:-Central Government in any case

D:-None of these

Correct Answer:- Option-A

Note:—

In the case of Government servants returning from duty abroad whose services are lent to another Government the liability of the borrowing Government for the transit pay and allowances including travelling allowances while joining the new service shall be restricted to the period of commencing from the date of arrival of the Government servant in India.

(iii) In the case of an officer in a joint cadre serving two Governments his transit pay and allowances including travelling allowance on transfer from one office to another shall be debited to the office to which he is proceeding.

2. When a Military or Medical Officer holding a civil post on consolidated pay which is less than his military pay is allowed to draw the difference between them he draws it from the Department—Central or State—from which he receives his consolidated pay.

3. The following rules govern the incidence of the cost of troops lent to Civil Departments of the Central Government and to the State Governments. The words ‘military’ and ‘troops’ are used to include Indian Navy and the Air Force as well as

the Army—

(1) When troops are required on duties of a ‘military’ nature, eg. ceremonial purposes and provision of escorts or guards of honour in circumstances not

covered by instructions 771, 772 and 775 of the Regulations for the Army in India (1937 Edition) and flag marches when they fall into the category of cases involving duties of a military nature and when they are not connected with the maintenance of law and order the extra cost, if any, of supplying the service required (eg., in the way of transport, equipment, etc.) will be met by a contribution from the State or the Civil Department concerned of the Central Government to the Defence Services Estimates.

Note:—

The cases in which flag marches come within the scope of this rule will be decided by the Central Government

(2) When troops are employed by civil on duties of a ‘non-military’ nature (e.g. on occasions of public calamities or emergencies, such as fire, earthquakes, floods, famines and strikes), the State Governments or Civil Departments concerned will be liable to bear the following charges unless they are waived by the Central Government for any exceptional reasons.—

(a) In strikes, etc., for carrying on essential public services.—The complete cost of the force including ordinary pay and allowances, extra cost of transport, equipment (including loss and repair expenses, etc.) and extraordinary charges in the shape of special pay or transport of stores to the personnel engaged at the rates laid down in paragraph 397 to 399, Pay and Allowance Regulations, Part I and Rule 491 Regulations for the Army in India.

(b) In fires, floods, famines, earthquakes and other calamities of nature—All extra cost involved in the way of transport, equipments etc., and all extraordinary expenses in the shape of special pay or the supply of stores to the personnel engaged at the rates laid down in paragraphs 397 to 399, Pay and Allowances Regulations, Part I and Rule 491 Regulations for the Army in India.

🆀 When Military troops are employed by State Governments for duties on occasions of calamities of nature such as fire, earth quakes, floods, famines etc. the State Governments will be liable to bear which costs, unless they are waived by the Central Government for any exceptional reasons?

A:-The complete cost of the force including ordinary pay and allowances
B:-All extra cost involved in the way of transport, equipments etc., and all extraordinary expenses in the shape of special pay or the supply of stores to the personnel engaged
C:-No cost needs to be paid by the State Government
D:-None of the above

Correct Answer:- Option-B

Note:—

In addition, when troops are employed on duties falling under either clause (a) or (b) above, the State Government or the civil department concerned of the Central Government will be liable for all loss or damage to property (including military) and also for all pensions awards made in respect of casualties arising directly out of the employment.

(3) The full cost of employing troops in aid of the civil power for the prevention or suppression of disorder will be met by the Central Government from Defence Services Estimates; but it will be open to the civil department of the Central Government or the State Government concerned to contribute towards the cost if they wish to do so. The State Government or the civil departments concerned will nevertheless to liable for the payment of any compensation that may become payable in respect of any damage done when troops are employed in aid of the civil power.

(4) Rewards for proficiency in oriental languages paid to a Military Officer from the Defence Service Estimates during the three years preceding his transfer to other departments of Central Government or to State Governments will be recovered by the Controller of Defence Accounts (Pensions) Allahabad, from the Department of Government concerned on confirmation of the officer in his civil appointment.

Rewards to Military Officers in temporary civil employ under the Central or State Governments for proficiency in oriental languages are paid by the Controller of Defence Accounts (Pensions) Allahabad, from the Defence Services Estimates in the first instance. On confirmation of an officer in the civil department, the Controller of Defence Accounts (Pensions) Allahabad, will recover from the department or State Government concerned, the amount of any language rewards paid to the Officer from the Defence Services Estimates.

The amount recoverable from the civil department of the Central Government or from the State Government in these cases is the civil rate of language reward as published by the Ministry of Education, but in the case of officers of the category referred to in sub-paragraph (1) above the difference between the military and the civil rates of awards is recoverable from the officers themselves in instalments of ` 50 per mensem.

Note:—

Rewards for passing the Lower and Higher Standard Examinations in Urdu by officers in temporary civil employ are not refundable to the Defence Services Estimates.

4A. Indian Commissioned Officers of the Armed Forces in civil employ count their civil service as qualifying for the outfit allowance under item (d) of A.I. (I) 16/5/48,

A.F.I. (I) 6/S/48,

R.I.N. (I) 4/S/49,

provided that:

(a) their pay and allowance are governed by the new Pay Code; and
(b) they are required to wear uniform while in civil employ.

The entire cost of the outfit allowance is debitable to the estimates of the Ministry (Central Civil)/State Government under whom the officer is employed at the time the allowance becomes due for payment.

5. When soldiers are sent under Military escort from one station to another to stand trial on a criminal charge, they will travel like any other party of soldiers on duty, under a warrant furnished by the Military Authorities, the charge being met from the Defence Service Estimates. When a soldier is conducted by a Police escort, the charge will be civil; the warrant issued in such cases should include the accused as he is a soldier proceeding to a certain place under the Orders of his Military Superior and therefore on duty.

6. Civilian Government servants, who belong to the Army in India Reserve of Officers, when called up for training receive the following emoluments:—

(i) when proceeding to carry out their training direct from their civil appointments but for the training, for the whole period of absence on such training inclusive of the time spent in transit to and fro;

(ii) when proceeding to carry out their training while on leave in India, Burma, Ceylon, Great Britain or Northern Ireland, the civil leave pay and allowances which they would have drawn but for training;

(iii) when proceeding to carry out their training on the expiry of leave out of India taken from their civil appointments but before rejoining the civil appointments for duty, joining time civil pay from the date of disembarkation in India to the date of preceding that on which their training commenced and full civil pay for the period of actual training and the period spent in journeying to the place of their civil appointments; and

(iv) military pay and allowances for the period of actual training.

The emoluments drawn under (i) to (iii) are debitable to the Civil—Central or State Estimates—and that under (iv) to the Defence Services Estimates.

If it is necessary to provide a substitute in the place of such as officer undergoing training the additional cost will be charge on Civil Estimates.

Note:—

This rule is also applicable in regard to the allocation of the civil pay of a Government servant, who is a member of the Indian Naval Volunteers Reserve or the Indian Naval Reserve, when called up for training.

7. Reservists of the Indian Army employed under the Central or State Governments will, when called up for periodical military training, receive military pay and allowances. They will also receive the excess, if any, of their civil pay over their military pay, provided that this concession is specifically sanctioned, by the Department of the Government of India or the head of the attached or subordinate office concerned, or by the State Governments in whose employ the reservists are serving in their civil capacity. Except where the civil pay of the reservists is met from the Defence Services Estimates the extra expenditure involved will not constitute a charge against the Defence Services Estimates.

7A. Civilian Central or State Government servants who are members of the various Army, Navy and Air Forces Reserve (excluding the reserve of the officers) will, when called up for periodical training receive pay and allowances as under:

(a) During the transit period, they will be entitled to their civil rates of pay and allowances to be met from the Budget to which such expenditure is normally debitable.

(b) for the period of training (excluding period of transit) if the pay and allowances (excluding concessions in kind, eg., free ration etc.) admissible as reservist are less than the pay and allowances admissible in the civil post, the difference will be paid and debited to the Budget head to which the individual’s civil pay is normally debitable.

8 [Deleted]

9. The military pay and allowances drawn under paragraph 250 of the

Regulations for the Auxiliary Force, India, by a civilian Government servant who is a member of the Auxiliary Force, India, on his being called out or embodied under section 18 of the Auxiliary Force Act, are borne by the Defence Services Estimates.

In cases in which the Government servant draws, in such circumstances, civil rates of pay, the amount if any, by which these rates of pay exceed military pay and allowance is debitable to the ordinary head of expenditure to which the civil pay of the individual concerned is debitable.

10. Travelling allowances of Telegraph signallers accompanying Governors and other high officials on tour is debited to the Department concerned, although their pay for the period to debited to the Telegraph Department.

11 [Deleted]

12 Subject to any separate agreements that have been or may be arrived at between the various Governments, the pay and allowances including travelling allowances, of a Government servant summoned to give evidence in his official capacity in a Criminal Court or in a Civil Court in a case in which Government is a party are, during the period of his absence, debited to the Government under which he is employed. Actual expenses under the rules of the court of admissible are however, payable by the court, and debited to court contingencies.

13. [Deleted]

II. Incidence of Leave Salaries

The following rules govern the incidence of leave salaries of Government servants who have served under two or more Governments:—

For the purposes of these rules—

(1) service under the.......................Defence Department and Commercial Departments within the same Government should be regarded as service under a separate Government;

(2) a lending Government is ordinarily a Government under which a Government servant first obtains permanent employment;

(3) leave salary does not include a house rent allowance or other compensatory allowance drawn during leave.

1. Save as otherwise provided in these rule when a Government servant is transferred to service under Government other than that under which he was first employed the leave salary drawn by him during any leave salary drawn by him during any leave taken after the date of transfer should be debited to the borrowing Government until the entire leave earned under that Government has been exhausted, irrespective of whether the leave is taken while the Government servant is actually serving under the borrowing Government or not.

Note 1—

In cases in which a Government servant while in permanent service under one Government is transferred to equally permanent service under another Government, eg. Officers of the Indian Medical Civil Service transferred to permanent civil employment and members of the Indian Civil Service transferred to permanent employment in Central Departments, such as the Indian Customs Service or the Indian Audit and Accounts Department, the Government to which such a Government servant is permanently transferred should not be regarded as a borrowing Government but should be regarded as occupying the same position as the original lending Government. In other words, for the purposes of these rules, it is to be regarded in respect of that Government servant in future as a lending Government. This principle shall not however, apply to cases in which a Government servant is transferred from one Government to another to fill a permanent post for a limited period, eg, Secretary ship in the Central Government’s Secretariat.

An important corollary of this principle is that when an officer of the Indian Army or Indian Medical Service in permanent civil employ is retransferred temporarily to the Defence Department for war work, etc., Defence Department for war work, etc., Defence Department should be regarded as a borrowing Government.

Note 2—

In case of Government servants borne on joint cadres service under a Government, other than the parent Government, will be treated as service under a borrowing Government, but see Rules 9 and 10.

Note 3—

No share of the leave salary of a civilian Government servant belonging to the Army in India Reserve of officers or the Indian Territorial Force for

the period he is called out for military training will be debitable to the Defence Service Estimates.

Note 4—

Leave earned by service under the Government of Burma prior to separation will, for purposes of allocation, be treated as earned under the Government under which the officer concerned was permanently employed on the 1st April, 1937.

2. Except as provided in the two succeeding sub-paragraphs the liability of a borrowing Government should be taken in all cases (including those of Government servants whose leave is regulated by the leave rules in the Civil Service Regulations or any other leave rules) in terms of leave on average pay, at 5/22nds of duty in the case of Government servants subject to the Special Leave Rules of the Fundamental Rules or the European Service Leave Rules of the Civil Service Regulations or any other corresponding leave rules and at 2/11ths duty in the case of others, without regard to the maximum limit of leave that can be earned or granted to the Government servant under the leave rules to which he is subject. This principle applies also in the case of Military Commissioned Officers, Departmental Officers and Warrant and Non-commissioned Officers whose leave is regulated under Military Leave Rules and/or Fundamental Rule 100. For the purpose of determining the liability for leave salaries, these officers should be considered to have earned leave as follows—

(a) Military Commissioned Officers—5/22nds of duty performed.

(b) Others—2/11ths of duty performed.

In the case of officers serving in vacation departments the leave, earned is subject to reduction by one month or a fraction of a month, as the case may be, for each year of duty in which the vacation was wholly or partly enjoyed. For the purpose of subsidiary leave accounts it may, however, be assumed that vacation was enjoyed in all cases prior to 1st January, 1922, the true facts recorded in the leave accounts being taken into account in all subsequent calculations.

In the case of High Court Judges, the calculations for the purpose of subsidiary leave accounts should be made in accordance with the leave rules to which they are subject under the Government of India ( High Court Judges) Order, 1937.

3. When the leave salary of a Government servant has to be allocated under these rules between an original lending Government and a second lending Government (vide Note 1 under rule 1), it should save as provided in Rule 4, be debited first to the second lending Government to the full extent of the leave earned under it and a debit to the first lending Government will be made only when all leave earned under the second lending Government has been exhausted. Similarly, if the leave salary has to be allocated among three lending Governments, the leave earned under the third or the last lending Government will first be exhausted, then the leave earned under the second and finally the leave earned under the first or original lending Government. This principle of debit of leave salary according to the reverse order to that of employment shall also apply, subject to the provisions of Rules 1, 4 and 11 when leave salary has to be allocated among two or more borrowing Governments and in respect of different periods of service rendered by a Government servant under a particular Government. In the latter case, the leave salary in respect of the leave earned in each period of service under the particular Government will be dealt with separately.

The example given below illustrates how the principle laid down in this rule read with Rule 1 should be applied in practice:—

Suppose a Government servant has rendered service under different Governments as follows:—

Permanently employed under ➤On the 1st April, 1930

Government A

Lent to Government P ➤ From the 1st April, 1931 to

31st July, 1931.

Reverts to Government A ➤ On the 1st August, 1931.

Transferred permanently ➤On the 1st April, 1932.

to Government B

(second lending Government)

Lent to Government Q ➤ From the 1st June, 1932 to

the 31st August, 1932.

Lent to Government P ➤From the 1st September, 1932

to 30th September. 1932.

Reverts to Government B ➤ On the 1st October, 1932.

Transferred permanently ➤ On the 1st December, 1932

to Government C (third lending Government)

Proceeds on leave for 28 ➤ On the 1st April, 1933

months from Government C

The leave salary of the Government servant will be debited to the different Governments in the following order:—

Firstly, Government P in respect of leave earned under it for the period 1st June, 1932 to 30th September, 1932.

Secondly, Government Q in respect of leave earned under it for the period 1st June, 1932 to 31st August, 1932.

Thirdly, Government P in respect of leave earned under it for the period 1st April, 1931 to 31st July, 1931.

Fourthly, Government C in respect of leave earned under it for the period 1st December, 1932 to 31st March, 1933.

Fifthly, Government B in respect of leave earned under it for the period 1st October, 1932 to 30th November, 1932 and 1st April, 1932 to 31st May, 1932.

Sixthly, Government A in respect of leave earned under it for the periods 1st August, 1931 to 31st March, 1932, 1st April, 1930 to 31st March, 1931 and in respect of leave earned under it by service prior to 1st April, 1930.

3A. When a Government servant is granted an extension of service and the whole of the leave at his credit on the date of compulsory retirement lapses under F.R. 86(a) or any other corresponding leave rule and no leave is carried forward on extension of service, the Government for whose benefit the extension is sanctioned will bear the entire charge for leave salary in respect if the leave earned by him during the period of extension, any liability of any Government on that date as shown in his subsidiary leave account being automatically cancelled. When, however, such a Government servant carries forward any leave on extension of service, such liability continues, but only in respect of the leave actually carried forward.

4. When a Military Commissioned Officer, claims under Note 2 to Fundamental Rule 90 the privilege of drawing the minimum leave salary fixed by Military Rules in respect of any period of leave earned under those rules before coming under civil leave rules, such portion of the leave as was actually earned by military service should be debited to the Defence Department.

5. The Government which sanctions ‘leave not due’ will bear the charge on account of such leave in the first instance in all cases, but in cases where the Government servant on return from such leave is transferred to another Government before the ‘leave not due’ taken by him is completely earned by duty, such readjustment of the charge may be made as may be agreed upon by the two Governments concerned.

6. Leave salary in respect of Special Disability leave granted to a Governments servant will be borne by the Government which sanctioned the leave, provided that where a Government servant has served under more than one Government and is granted Special Disability Leave on average pay under Fundamental Rule 83 (7) (b) half of which is debitable to his leave account under Fundamental Rule 78 (b), the debit for such leave should be made both in the main and subsidiary leave account and the actual amount of leave salary drawn by him for the whole period of such leave will be apportioned among the Governments concerned in the proportion in which that leave is debited to his leave accounts with those Governments.

Note.—

The leave salary for the period of Special Disability Leave granted to a Government servant in respect of when leave salary contributions are recovered will be borne by the Government under which the Government servant has serving at the time the disability was incurred even though the disability manifests itself subsequently.

This amendment shall be deemed to have come into force with effect from 1st August 1967.

7 The “Study and other allowances and leave salary” paid to a Government servant during study leave will be borne by the Government under which he was employed when the study leave was granted.

8 The Government which received or remitted the contribution for leave salary of a Government servant in foreign service should bear the charges for his leave salary in respect of the leave earned by him during such service.

9 In respect of Government servants subject to the Central Government’s Revised Rules, 1933, or similar rules issued by other Governments which make the calculation of leave in relation to the period of duty impossible contribution for leave salary is recovered from borrowing Governments. The liability of a borrowing Government to pay contributions to the lending Government ceases when Government servant is permanently transferred to the former, but the lending Government remains responsible for the leave salary of the Government servant in respect of “earned leave” and “half pay leave” at credit on the date of his permanent transfer to the borrowing Government. This amount of “earned leave” should be exhausted first by the Government servant before any “earned leave” in respect of service after permanent transfer to the borrowing Government is taken and similarly the amount of “half pay leave” due from lending Government should be exhausted first. The leave salary in respect of any other kind of leave which may be taken by the Government servant after his permanent transfer to the borrowing Government under the leave rules of that Government will be borne by the Government. But also see Rule 11.

Note:—1.

In the cases of officers borne on joint cadre, allocation of leave salary will be made in accordance with the arrangement mutually agreed upon by the Government concerned.

Note:—2.

No leave salary contribution shall be paid by Defence Department in respect of Central Civil Government servants other than the employees of the Railways and Posts and Telegraphs Departments transferred to military service during the National Emergency, 1962 but leave salary in respect of leave actually taken while in military service will be paid from Defence Estimates.

Note:—3.

In the cases of members of the Central Secretariat Service, the Central Secretariat Stenographers Service, and the Central Secretariat Clerical Service who may be posted in the Office of the Director General, Posts and Telegraphs, no allocation of leave salary between the Posts and Telegraphs and the Civil Departments will be made and the actual leave salary charges will be borne by the Department which sanction the leave.

Note:—4.

Periods of active service/training under Defence Department of Civilian Government servants who are reservists (other than officers) of the Army, Air Force Reserve, Indian Fleet Reserve, Air Defence Reserve, Indian Naval Reserve and Indian Naval Volunteer Reserve are treated as duty in the civil post. No leave, salary contribution shall be payable by the Defence Department in respect of such periods of active service training.

*Note:—5.

If an employee of the State Government during his deputation to the Central Government or at the end of it, surrenders, under the leave rules of the State Government, earned leave at his credit and in consideration thereof becomes entitled to additional remuneration representing cash value of the leave surrendered, the liability for the payment of the additional remuneration including house rent or compensatory allowance relatable to the cash value of the leave surrendered will devolve wholly on the State Government. The Central Government being the borrowing Government will continue to be liable for payment of only the duty pay and allowances.

*Note:—6.

In the matter of leave earned from 1-10-1972 including the leave at credit on that date and availed of thereafter by the former Secretary of State Officers also, the procedure outlined in this paragraph will apply. (This will have effect from 1-10-1972.).

9A. There will be no allocation of leave salary with regard to deputations, from the Posts and Telegraphs and Railway Audit Offices to the Posts and Telegraphs and Railways Department and vice versa of Government servants governed by the leave rules in the Fundamental Rules, Similarly, no contribution for leave salary shall be recovered by the lending department for such deputations if the Government servant concerned is subject to the Central Government Revised Leave Rules, 1933.

Note:—

In respect of transfers of members of the Indian Audit and Accounts Service and the Indian Railway Accounts Service under the scheme of exchange of officers between the Indian Audit and Accounts Department and the Indian Railway Accounts Department there shall be no allocation of leave salary/recovery of leave salary contributions as between the two Departments.

10. Notwithstanding anything contained in these rules the Government of Orissa will liquidate its liability for the leave salary of officers of the joint cadre services serving under it by payment of leave salary contribution in respect of such service to the Government of Bihar and the same procedure applied till 30th June, 1943, in respect of Officers of the Madras Government lent to the Government of Orissa.

11. Notwithstanding anything contained in these rules, the allocation of leave salary in respect of Meteorological Officers on deputation to the I.A.F. from the Indian Meteorological Department will be deferred till the reversion of the officer to his parent department. The Ministry of Defence will be responsible for the leave salary of the Government servant in respect of the leave earned during the period of deputation to the I.A.F.

III. Incidence of the Cost of Passages

The following rules govern the incidence of the cost of passages taken by Government servants who have served under two or more Governments under the Regulations containing in Schedule IV to the Superior Civil Service Rules or under the Central Service (Non-Superior Officers) Passage Rules, 1939, or under the Railway Services (Non-Superior Officers) Passage Rules, 1939, or under identical terms in rules or orders of a State Government, or under the rules of the Defence Department.

For the purposes of these rules,…………………and the Commercial Departments are treated as separate Government and the Defence Department of the Central Government is also treated as a separate Government.

1. (i) When the services of a Government servant who is entitled to passage concessions under the terms of the Service Rules applicable to him and lent by one Government to another, the borrowing Government will pay contributions in respect of his passages of lending Government at the rates specified below for the period of the service, including leave, rendered by the Government servant under the borrowing Government. The cost of all passages taken by him (including those taken while serving under the borrowing Government) will then be borne by the lending Government. The calculation of the total amount payable by the borrowing Government may be made at the end of the Government servant’s service order the latter or at the end of the financial year, whichever is earlier and the adjustment may then be made in one lump sum.

The rates of contribution applicable to the several classes of officers will be as follows:—

Civil Officers entitles to first class`	₹50 per mensem
Civil Officers entitled to second class passages	₹30 per mensem.
Army and Air Force Officers	At the rate prescribed in Appendix X, Defence Service Regulations, India, Financial Regulation Part I (Army and Air Forces).
Naval Officers	At the rate prescribed in Appendix XIII, ‘Financial Regulations for the Royal Indian Navy’

These rates are subject to any ad hoc increase of a temporary nature as notified from time to time.

Note:—

In respect of officers of joint cadres serving two or more Governments the provisions of this clause may be varied by mutual agreement between the Governments concerned.

(ii) When such a Government servant is transferred permanently from one Government to another the allocation of the liability for his passage will be made between the two Governments as follows:—

(a) The Government under which the Government servant was originally employed will be debited with an amount equivalent to the contributions calculated at the rate mentioned in clause (i) above for the period of service including leave, rendered by him under that Government. The expression ‘period of service’ in this clause includes any period of service under another Government in respect of which contribution for passages has been received, but excludes any period of service in respect of which the Government servant was not eligible for passage concessions under the rules applicable to the service to which he belonged.

(b) That Government will be credited with an amount representing the cost of passages already taken by the Government servant while serving under it.

If (a) exceeds (b) the difference will be paid by the original Government to the second Government, and, conversely, if (b) exceeds (a), the difference will be

100

recovered by the original Government from the second Government. The cost of all passages taken by the Government servant after the date of transfer will be debited to the second Government.

Note:—

A Government servant will not be considered to have been transferred permanently from one Government to another until he is confirmed in a permanent post, other than a tenure post, under the latter Government.

IV. Incidence of Pensions

Except in regard to the apportionment of liabilities in respect of pensions of the serving and retired Government servants of the undivided India between India and Pakistan, the following rules regulate the adjustment of pensionary charges of Government servants who have served under one or more than one Government. These rules also constitute the agreements relating to the distribution of pensionary charges contemplated by Article 290 of the Constitution of India.

2. * * * * *

2A. [Deleted]

3. For the purposes of these rules:—

(1) ‘Length of service’ means ‘length of qualifying service’;

(2) Service under a Government includes period for which a Government servant drew pay or leave salary from that Government;

(3) Service rendered in a department the expenditure or which was debited to a divided head before 1st April 1921 should be treated as service under the Central or State (Formerly Provincial) Government according as the head in question became Central or Provincial after 31st March 1921;

(4) Service rendered under the late Crown Representative should be treated as service under the Central Government (Civil);

(5) Foreign service should be treated as service under the Government which received or remitted, as the case may be, the contribution for pensions in respect of such service;

(6) Compassionate allowances are treated as pensions.

101

4. When pensionary charges are apportioned under these rules between different Governments on the basis of length of service, the following, except as provided in Rule 5, should be excluded from the calculation of such service:— Periods of probation or training during which the Government servant did not hold a sanctioned charge, period of such leave as commuted furlough, leave on average pay other than the first four months of each period of such leave and leave on less than average or full pay and in the case of Government servants governed by the Central Government’s Revised Leave Rules, 1983, any period of leave during which leave salary was drawn other than earned leave not exceeding 90 days (120 days under the rules as liberalized in 1949) in any one spell, and special editions (excluding additions in respect of periods of war service—vide Rule 14 of these rules) to qualifying service of periods during which no qualifying service has been rendered to Government, which are allowed by special rules or orders made by Government, for example Article 404-A of the Civil Service Regulations, or corresponding rules of a State Government. The effect of omitting these periods will be that the pensionary liability in respect thereof will be distributed among the employing Governments in the same proportion as the liability for the rest of the Government servant’s service.

Explanation.—

The periods of leave counting as qualifying service for pension under Article 407, Civil Service Regulations, earned under and paid for by a particular Government as shown in the subsidiary leave account, are part and parcel of the qualifying service rendered under that Government. While calculating the length of qualifying service, such periods should not be separated from the spells of actual qualifying duty immediately proceeding or following such leave.

5 In the case of pensions which are earned by total service including leave, the pensionary liability should, subject to these rules, be distributed among the employing Governments in proportion to the periods for which the Government servant concerned has drawn pay or leave salary from each Government.

6 When a deficiency in qualifying service is condoned, the period condoned should be reckoned as service under the Government which condones it.

7 Pensions, including wound or injury pensions and pensions to the dependants of Mutiny Veterans, sanctioned before 1st April 1921 will be debited to the Central Government, if paid outside India and Pakistan and to the Government by which the payment is made, if the payment is made in India.

102

Note:—

Pensions which were in payments in an erstwhile Indian State on the date of its merger with a Part A State will continue to be debited to the Central Government.

8. Except as provided otherwise in these rules, pensions sanctioned on or after 1st April 1921,will be adjusted as follows:—

(a) Payments outside India and Pakistan—

(i) If a Government servant has served under one Government only, that Government will bear the charge.

(ii) If he has served under more than one Government, the pension will be divided among the several Governments in proportion to the length of service under each.

(b) Payments made in India:—

I. Pensions sanctioned before 1st January 1942—

(i) If a Government servant has served under one Government only that Government will bear the pension drawn by him on retirement even though it may be disbursed by another Government.

(ii) If a Government servant has served under more than one Government (other than Central Government) before retiring, his pension will be borne by the Government under which he was serving at the date of retirement.

(iii) If a Government servant has served both under the Central Government and under one or more other Government before retiring the Central Government will be debited with a proportionate share of the pension determined by mere length of service. The balance will be borne by the Government under which he was serving at the date of retirement, or if that be the Central Government, by the Government under which he was serving prior to his transfer to the Central Government.

103

Note:—1.

The initial allocation of a pension made under this rule, shall not be altered subsequently merely by reason of its transfer from a place outside India and Pakistan to India or vice versa; but see Rule 34. .

Note:—2.

In the case pensions of Government servant transferred from Burma to India before 1st April 1937 and retiring on or after that date service rendered under the Government of Burma before that date should be ignored for the purpose of this rule. The effect of ignoring such service will be that the pensionary liability for the service will be distributed among the other employing Governments in the same proportions as the liability for the rest of Government servant’s service. The entire pensionary liability in cases of such transfers from India to Burma is borne by the Government of Burma. In the case of transfers on or after the 1st April 1937,liability of the Government or Governments in India, as the case may be, and the Government of Burma will be limited, unless settled otherwise by mutual agreement, to the pension earned by service under each.

Note:—3.

In respect of pensions sanctioned on or after 1st April, 1937, for Government servants who have rendered a part of their service in Aden prior to its separation—including in their case any service after separation also—the liability of the Government or Governments in India, as the case may be, and the colonial Government should be fixed on the basis of length of service, any period of service in Aden for which India recovered pension contribution from the Colonial Government in any individual case being allocated as service in India.

II. Pensions sanctioned on or after 1st January 1942—

If a Government servant has served under more than one Government (including the Central Government) before retiring, his pension will be divided amongst the several Governments in proportion to the length of service rendered under each.

Note:—

In case where pensionary liability is required to be allocated between two or more Governments, only the net amount of Death-cum-Retirement Gratuity payable after deduction of the amount equivalent to two months, emoluments; in the case of an employee eligible for the benefits of the New Family Pension Scheme, 1964, should be so allocated.

104

9. Special additional pension sanctioned on or after 1st April 1921, whether paid in India or outside India and Pakistan will be treated as separate items and distributed according to the length of service between the different Governments under which, the service by which the additional pensions was earned was rendered. The allocation should be based on the total period of service in the lower and upper grades combined without regard to the period of service by which the additional pension can be earned in any one grade alone. See also Rule 11

Note:—1.

The Railway, Posts and Telegraphs and Defence Departments shall be regarded as separate Governments for the purpose of this rule.

Note:—2.

Note 2 under Rule 8 applies mutatis muntandis to special additional pensions.

10. Wound and Injury pensions granted to a Government servant and the pensions granted to the family of a Government servant in the event of his death from wound or injury, sanctioned on or after the 1st April, 1921 will be debited to the Government under which the Government servant was serving when the wound or injury was received.

Note:—

The Railway, Posts and Telegraphs and Defence Departments shall be regarded as separate Governments for the purpose of this rule.

11 In respect of pensions sanctioned on or after the 1st April 1921 for Government servants serving in the Irrigation Department, whether paid in India or out of India, the liability of the Central Government, in respect of services rendered prior to the 1st April 1921 , should be fixed in each case in the proportion which the entire cost of the irrigation establishment debited to wholly Imperial heads bore to that debited to Provincial or divided heads, or in the case of Madras to the total Public Works Establishment charges; the proportion being determined on the average of the ten years preceding the 1st April 1921 . This rule also applies to special additional pensions dealt with under Rule 9.

12. Pensions sanctioned on or after 1st April 1921 for military officers and other ranks, including those of the Indian Medical Service or Department who have been employed partly under the Defence Department and partly under the Civil

105

Department of the Central Government or State Governments, will be distributed in accordance with the principles laid down in Rules 8 (a) (ii) and 8 (b) I (iii) or 8 (be) II of these rules between the State Government or Government concerned, the Central Government (Civil Estimates) and the Defence Services Estimates in proportion to the length of service rendered in the Civil Departments of each Government and in the Defence Department. Special additional pensions awarded to Military Officers holding high civil posts will, as laid down in Rule 9, be distributed according to the length of service by which it was earned under the different Governments. These principles will also be applied mutatis muntandis to pensions sanctioned on or after 1st April 1921 for Civilian Government servants who have been employed partly under the Defence Department; but no share of the pensionary charges of a Civilian Government servant belonging to the Army in India Reserve of Officers for the period he is called out for military training will be debitable to the Defence Services Estimates, the share being debited to the Government from which the officer draw pay or leave salary for the period in question.

Note:—1. Pensionary charges of Central Civil Government servants (other than employees of Railways and P&T Departments) transferred to Military Service during the National Emergency, 1962 need not be allocated between the Civil and Defence Departments and the liability for pension of the Government servant in question relatable to the period of Military Service during the National Emergency will be borne by the Civil Department.

Note:—2. Period of active service training under Defence Department of Civilian Government servants, who are reservists (other than officers) of the Army, Air Force Reserve, Indian Naval Reserve and Indian Naval Volunteer Reserve, are treated as duty in the civil post and no share of pensionary charges shall be debitable to Defence Estimates for such duty.

13. Civil servants who were placed on military duty during the Great War shall be deemed to have served under the Central Government for the period of that duty; the pensionary charges in respect of that duty being debited to the Defence Department in the case of pensions sanctioned on or after the 1st April 1921.

13A. In the case of Civil Government servants who held higher temporary or officiating posts in the Defence Services during the Second World War (1939) to whom Article 487-A of the Civil Service Regulations applies and for whom pension contributions were originally recovered on the basis of the substantive appointments held by them, the extra pensionary liability should be debited against the Defence Estimates.

106

Similarly in the case of Civil Government servants holding higher temporary or officiating posts in the Defence Services to whom Article 487-5B of the Civil Service Regulations applies the extra pensionary liability should be debited against the Defence Estimates.

14. The Pensionary liability in respect of periods of war service rendered by a Government servant prior to civil employment and added to civil qualifying service under the relevant Service Rules in distributed as follows:—

(a) In the case of officers and men, who rendered military service in the World War I and are allowed under Article 357-A C.S.R., to count such service towards civil pension, subject to a maximum of four years, no portion of the pensionary charge in respect of such added service should be debited to Defence Estimates. The entire charge in respect of the added service is debitable to the Civil Department the distribution between employing Governments being made in the same proportion as the liability for the rest of the Government servant’s qualifying service.

Note:—The procedure laid down in this rule will apply, mutatis muntandis in respect of war service rendered as members of His Majesty’s Forces in World War II by persons who have been appointed permanently to war-reserved and other vacancies which arose before 1st January 1948 and are allowed, subject to the general principles laid down in Articles 337-A and 357-B of the Civil Service Regulations, to count completed years of satisfactory whole time military service rendered between 3rd September 1939 (or the date of their attaining the minimum age of entry into the service or post to which they are appointed on a permanent basis, whichever is later) and 1st April 1946 towards civil pension up to a maximum of five years.

(b) In the case of surplus officers of the Indian Army, who retired under the Royal Warrant of the 25th April 1922 and subsequently obtained civil employment, the pensionary charges in respect of any special addition to civil qualifying service are debitable to the Defence Department.

107

15. Pensions sanctioned on or after 1st April 1921 to the dependants of Mutiny Veterans are debitable to the Central Government (Civil).

16. For the purpose of determining the share of pensionary charges between the Central Government and a State Government a Government servant who, during the last three years of his service, served under one Government but was concurrently remunerated by both Governments, or who served under and was remunerated by both the Governments simultaneously, should be considered to have served during this period under each of these Governments, for a period proportionate to the cost which each Government incurred.

16-A. The allocation of pensionary charges of the staff of the Employment and Training Organisations between the Central and State Governments will be as follows:—

(a) for the period of service rendered by a person for which pay was borne wholly either by the Central or the State Government the liability for pensions for the said period shall be of the Government concerned.

(b) For the period of service rendered by a person for whom pay was borne by the Central and State Governments in the proportion of 60:40 the liability for pension for such period will be shared by the Governments concerned in the same proportion.

17.* * * * *

18. [Deleted]

19. The pensionary charges of Government servants who have rendered Railway Department will be adjusted as follows:—

(i) All pensions which were being debited to the Railway Department on 3rd September 1929 will continue to be so debited.

(ii) Pension sanctioned on or after 3rd September 1929 should be distributed between the Railway Department and other departments of Governments under which the Government servants served in accordance with the principles laid down in Rules 8 (a) (iii) and 8 (b) I (iii) or 8(b) II.

108

Note:—Allocation of pensionary charges is to be made under the normal rules when an Officer of a Railway Audit Office is transferred to the Railways Department and vice versa.

No allocation of pensionary charges, is, however, necessary in the following cases of transfers under the ‘Exchange Scheme’—

(i) Transfer (between Railway Audit and Railways Department) at the level of Assistant Audit Officers/members of the Subordinate Railway Audit Service.

(ii) Transfers of members of the Indian Audit and Accounts Service/Indian Railway Accounts service between the Indian Audit and Accounts Department and the Indian Railway Accounts Department.

20. The incidence of pensionary charges of Government servants employed in the Posts and Telegraphs Department is determined as follows:—

I. Pensions sanctioned before 1st April 1921:

(a) If paid in a treasury situated in a Part A State, the charge is debitable to that State

Note:—Pensions which were in payment in an erstwhile Indian State on the date of its merger with a Part A State will continue to be debited to the Central Government.

(b) If paid in a treasury situated in a Part B or Part C State or territories specified in part D of the First Schedule to the Constitution or if paid outside India and Pakistan the charge is debitable to Central Government (Civil).

II. Pension sanctioned between 1st April 1921 and 31st March (both dates inclusive):

(a) when the whole of the pensionary service of a Government servant other than an officer of the Indian Civil Service or Indian Audit and Accounts service, has been rendered under the Central Government (including the Posts and Telegraphs Department) the charge, other than that debitable to Railways or Defence, will be debited irrespective place of payment, i.e. whether it is made in or outside

109

India—

(i) to the Posts and Telegraphs Department, provided the pensioner was at the date of retirement serving in that Department;

(ii) to the Central Government(Civil) provided the pensioner was at the date of retirement serving in a Department of the Central Government other than the Posts and Telegraphs Department.

(b) If the pensioner, other than an officer of the Indian Civil Service or Indian Audit and Accounts service, has served both under the Central Government (including the Post and Telegraphs Department ) and under one or more other Governments—

(i) the proportionate share debitable to the State Government or …………………as the case may be in accordance with Rule 3(b) I (iii) and 17 will be debited to the Government concerned;

(ii) the proportionate share debitable to the Central Government under Rule 8(b) I (iii) will be regulated in accordance with II (a) above.

(c) In the case of an Officer of the Indian Civil Service or Indian Audit and Accounts service, the amount debitable to the Posts and Telegraphs Department will be determined on the length of service rendered in that department.

Note:—Allocation of pensionary charges will be made under the normal rules when an Officer of a Posts and Telegraphs Audit Office is transferred to Posts and Telegraphs Department and Vice Versa.

III. Pensions sanctioned on or after 1st April 1935:

The pensionary charges will be distributed between the Post and Telegraphs Department and other Governments and Departments mutatis muntandis in accordance with the principles laid down in Rules 8 to 10, 12 to 14, 17 and 19.

21 * * * * *

22 * * * * *

23 * * * * *

110

24 * * * * *

25 For the purpose of determining the share pensionary charges payable by two or more Governments, the service of the pensioner under the several Governments should be expressed in terms of months 15 days or more being regarded as a month. When the share of pension debitable to a particular Government comes to less than rupees five, it should be neglected.

Local Ruling

“All shareable pensions sanctioned before 1st December 1966 will continue to be allocated if the share debitable to a particular Government is a rupee or more. The monetary limit of five rupees stipulated in the second sentence of the above rule will apply only in respect of the shareable pensions sanctioned on or after1st December 1966”.

26. When an adjustment has to be made under these rules between two or more Governments, it may except as provided in Rule 31 be made either by payment or lump or in instalments of the commuted value of a pension, in or accordance with any special arrangement which may be concerned between Government concerned. The system of lump sum adjustments of pensionary charges by payment of commuted value between the Central Government and State Governments is not however to be applied to pensions which are subject to revision after retirement. In such cases the adjustment with the Government concerned should be made as pensions are paid with reference to the actual amounts paid.

27. In adjusting pensionary charges between two or more Governments by payment of commuted value, the tables of present values prescribed respectively by the late Secretary of State and by the late Governor-General in Council under Rule 7 of the Civil Pensions (Commutation) Rules and should be employed, unless the Governments concerned mutually agree to employ any other table.

(a) The table prescribed by the late Secretary of State should be used in the case of—

(i) Civil Officers whose domicile at the time of their first appointment to Government service was non-Asiatic, and

(ii) Officers of the Indian Army, Indian Medical Service and Indian Navy

111

and Departmental and Warrant Officers whose domicile at the time of their first appointment to Government service was non-Asiatic.

(b) The table prescribed by the late Governor-General in Council, should be used in the case of—

(i) Civil Officers whose domicile at the time of their first, appointment to Government service was Asiatic, and

(ii) Officers of the Indian Army, Indian Medical Service and Indian Navy, Departmental and Warrant Officers (including military Sub-Assistant Surgeons), Non-Commissioned Officers and men of the Indian Army, whose domicile at the time of their first appointment to Government service was Asiatic.

(c) In respect of the portions of their pensions earned by period of service under State Governments or civil departments of the Central Governments, such other officers of the Defence Department whose pensions are governed by the Civil Service Regulations should be treated as civil officers for the purposes of clause

(a) (i) and (b) (i) of this rule.

28 The Defence Department’s share of a divisible pension should in all cases, excepting those falling under Rule 31, be extinguished by credit of the commuted value of that share to Central (Civil) by debit to Defence, the adjustment being made as and when each case, arises. The procedure will have the effect of converting the Defence Department’s share of the divisible pension into one relating Central (Civil) for Service Regulations should be treated as civil officers for the all purposes and will not in any way affect the arrangement that may be agreed upon for the adjustment of pensions between the Central and State Governments.

29. The provisions contained in the preceding rule will be applied conversely for the settlement of the civil shares of military pensions which are not subject to revision after retirement. That is to say, the civil share of divisible pension debitable to a State or to the Central Government (Civil) will be extinguished by credit of the commuted value of that share to Defence by debit to Central (Civil) the adjustment being made as and when each case arises. The Defence Account Officer will report periodically to the State Accountant General the amount of pensions paid in respect of cases where the arrangement between the Central and State Governments concerned for the adjustment of pensions in which reference to actual payments. This report should also cover cases where a pension which has been adjusted as provided in this rule is subsequently transferred for payment in the United Kingdom.

112

30. Pensionary charges of Government servants who have served under the Posts and Telegraphs Department and another Department of the Central Government (with the exception of the Railway Department) will except in cases falling under Rule 31, be adjusted in the following manner. In the case of such a pension sanctioned on or after 1st April 1938, if the actual monthly pension payments are not made at the Post Office and the Government servant concerned was not borne on the cadre of the Posts and Telegraphs Department at the time of retirement, the Posts and Telegraphs Department will be debited with the capitalised value of the share of pension debitable to it according to the length of service rendered in that Department , and the entire pension will then become a charge against Central Government (Civil). In cases in which the actual monthly pension payments are made by the Posts and Telegraphs Department, the Department will be credited with the capitalised value of the share of pension which is debitable to the other Departments according to the length of service principle, and the entire pension will then become a charge on the Posts and Telegraphs Department.

In cases where the pensions are divisible between the Posts and Telegraphs Department and the Railway Department the adjustment will be made on the basis of actual pensions paid.

31. The system of adjustment between Governments or Departments by payment of commuted value does not apply to pensions payable in England.

32. When a portion of a pension which is debitable to more than one Government is commuted by payment of the capitalised value of a portion of his pension to the pensioner, the amount commuted may be taken as being in absorption or reduction of the shares debitable to the different Governments in the order in which those shares rise from the least to the largest amount, except in the case of pension paid by the Commonwealth Relations Office, London, where the amount commuted is taken first in absorption or reduction of the share debitable to Defence Estimate.

Thus, if, out of a pension of ` 400 per month which is apportioned as follows:—

Government A . . 80

113

Government B . . 100

Government C . . 220

₹ 100 is commuted; the commutation will have the effect of extinguishing the share of ` 80 debitable to Government A and reducing from₹ 100 to ₹ 80 the share debitable to Government B.

The capitalised value of the amount commuted should, in such a case, be debited to Government A and B in proportion to the amounts by which their monthly shares of the pensions have been reduced.

33 * * * * * *

34. When the payment of a pension which was sanctioned after 31st March 1921 and paid outside India is transferred to India, and the transfer involves the payment by one Government of a charge for which another Government is responsible under Rule 8 (b) I (i), the adjustment of the charge will be effected in accordance with Rule 26. In the reverse case of transfer outside India of such a pension paid in India, the classification of the payments made out of India will be the same as it was at the time of the transfer.

35 * * * * *

V. Incidence of charges for bonus in respect of Government servants

who are employed on bonus terms and who serve under more than one Government

1.. The Government to which a subscriber to a special provident fund originally belongs is primarily responsible for payment of bonus and interest on his subscriptions to the fund. When the services of a subscriber to such a fund are lent to another Government, the borrowing Government may be required to pay bonus contribution to the lending Government under such arrangement as may be settled between the two Governments concerned.

The recoveries from the borrowing Government shall be classified as reduction of charges under the Major Head “0071—Pensions and other retirement benefits”.

In the case of commercial departments or undertakings in which the payment of bonus to special provident funds is debited to working expenses the recoveries

114

should be adjusted as reduction of charge under the appropriate head of account concerned.

2. When a person who is permanently transferred from Railways is admitted under proper sanction to the Contributory (Transferred Railway Personnel) Provident Fund Rules, the special contribution or gratuity admissible will be paid by the department which last employed him and apportioned between Railways and the other Department according to the formula contained in para 1248 of the Indian Government Railway General Code, Volume I read with paragraph 1249 ibid. The non-railway portion of the charge is accounted for under the appropriate head relating to the department concerned.

In case of temporary transfers, the question of apportionment of special contribution or gratuity does not arise, vide proviso (iii) under para 1311 of Indian Railway Establishment Code, Volume I and paras 1252 and 1252-A of the Indian Government Railway General Code, Volume I.

VI. Incidence of Government Contribution to Indian
Civil Service Family Pensions

[Deleted].

VII. Incidence of Government Contribution to the Indian Civil Service

(Non-European Members) Provident Fund.

The contribution payable in each case under Rule 6 of the Indian Civil Service (Non-European Members) Provident Fund Rules should be apportioned among the Governments concerned in accordance with the principle laid down in Rule 8 (a) (ii) of the rules regulating the incidence of pensions. This rule applies also to officers borne on joint cadres.

VII-A. Incidence of Family Pensions in respect of Armed Forces

Officers and of Civil Officers serving with the Armed Forces

Family Pensions in respect of Armed Forces Officers granted under the Defence Services Regulations or Instructions—whether at the ordinary or other rates—are debited to the Defence Services Estimates, even though the officers concerned may have served under Civil Departments of the Central or State

115

Governments. Family Pensions in respect of Armed Forces Officers in Civil employ granted under the provision III of Chapter XXXVIII of the Civil Service Regulations or the Superior Civil services (Extraordinary Pensions) Rules, 1936, or the Central Civil Services (Extraordinary Pensions) Rules, or under similar rules framed by the State Governments are debited wholly to the Civil Department—Central or State— as the case may be.

Family Pensions in respect of Civil Officers serving with the Armed Forces either in a civil capacity or otherwise, are debitable to the Defence Services Estimates.

C.OTHER CHARGES

VIII. Incidence of Expenditure Involved in Audit and Keeping

Accounts

The following rules govern the incidence of expenditure in Audit and Accounts:—

(i) Under Article 149 of the Constitution and the provisions of paragraph 13 (1) of the Audit and Accounts Order, 1936 (hereinafter referred to in these rules as the order), the Comptroller and Auditor-General is responsible for the audit of all expenditure from the revenues of the Union and of the States and of certain accounts specified in the order. In conducting such audit the Comptroller and Auditor-General performs a statutory function entrusted to him and the cost of this function is a charge of the Central Government.

🆀 Incidence of Expenditure involved in keeping the accounts of a state, in so far as the responsibility for keeping such accounts remains with the Comptroller and Auditor-General is ________?

A:-A charge of the State Government concerned

B:-A charge of the Central Government

C:-Shared among the central government and the state government concerned

D:-None of these

Correct Answer:- Option-B

(ii) Besides the audit of expenditure from the revenues of the Union and of the States and of certain accounts, as mentioned in Rule (i) the Comptroller and Auditor-General may be entrusted with the audit of the accounts of ‘any other authority or body’ by or under any law made by Parliament under the provisions of Article 149 of the Constitution. The cost of such audit is recoverable from the authority or body whose accounts are audited.

🆀Besides the audit of expenditure from the revenues of the Union and of the States and of certain accounts, as per Article 149 of the Constitution and section 13 (1) of the DPC Act; the Comptroller and Auditor-General may be entrusted with the audit of the accounts of any other authority or body' by or under any law made by Parliament under the provisions of Article 149 of the Constitution. The cost of such an audit is recoverable from whom?

(A) The Central Government

(B) The State Government concerned

(C) The authority or body whose accounts are audited

(D) No cost is recoverable in respect of such audits

Note:—1. The expression ‘any other authority or body’ does not include private commercial and quasi-commercial undertakings (other than Government

116

companies as defined in section 617 of the Companies Act, 1956) in which Governments in India may be participating.

Note:—2. In the case of Government companies the recovery of the cost of supplementary audit conducted under section 619 (3) (b) of the Companies Act, 1956, shall be waived in those cases where the audit is done by the Comptroller and Auditor-General through his own departmental staff but shall be enforced in cases where the Comptroller and Auditor-General employs professional auditors for the second audit.

(iii) If a State Government requests the Comptroller and Auditor-General to arrange for a more detailed or a local audit of expenditure, transactions or accounts which relate to or form part of the accounts of State, the criterion for deciding the incidence of the expenditure involved in such audit is whether or not the Comptroller and Auditor-General agrees to do the work as part of his, legitimate statutory functions. If he does, the cost of the audit should be treated as a charge of the Central Government, since what is involved is an extension of audit for which the Comptroller and Auditor-General is statutorily responsible. The fact that such audit is undertaken in a single State is not a decisive consideration in the apportionment of cost as the extent of audit to be conducted in any case is determined by the Comptroller and Auditor-General.

(iv) The Comptroller and Auditor-General is not responsible ab initio for the audit of any accounts mentioned in paragraph 13 (2) of the order, but, when he undertakes the audit of any such accounts he becomes statutorily responsible for the work. In this case also, the cost of audit is a charge of Central Government.

(v) The Comptroller and Auditor-General is not statutorily responsible for the audit of the accounts of local authorities (other than those in relation to the accounts of which specified duties have been entrusted to him by or under any law made by Parliament) whose accounts do not constitute part of the accounts of the Union or of any State and of the accounts of private commercial and quasi-commercial undertakings (other than Government companies as defined in section 617 of the Companies Act, 1956) in which Governments in India may be participating. Such audit can be undertaken by the Comptroller and Auditor-General only a “consent” basis and on such terms and conditions as regards recovery of costs, etc., as may be settled between him and the Government concerned.

Note:—The recovery of cost of audit of the accounts of local bodies/institutions that are wholly or largely financed from grants-in-aid or loans by

117

Government shall be regulated as follows:—

(i) Where the Comptroller and Auditor-General is the sole auditor for a local body/institution, whether under any law made by Parliament under Article149 of the Constitution or on consent basis under Article 9 of the Audit Code. Charges will be payable in full unless specifically waived by Government

🆀 Who will bear the cost of audit where the comptroller and Auditor-General is the sole auditor for a local body/institution, whether under any law made by Parliament under Article 149 of the Constitution or on consent basis?

A:-by the state government

B:-by the central government

C:-by the local body/institution where CAG is the sole auditor

D:-CAG conducts the audit free of cost

Correct Answer:- Option-C

(ii) Where the local body/institution has its own auditors and audit by the Comptroller and Auditor-General is conducted in addition with a view to safeguard Government interests and to ensure that the grants or loans by Government have been utilised for the purpose for which they are given, the Comptroller and Auditor-General will be acting in discharge of his statutory functions and the audit will be at Government cost.

(vi) Expenditure involved in keeping the accounts of a State, in so far as the responsibility for keeping such accounts remains with the Comptroller and Auditor-General under paragraph 11 of the order, is a charge of the Central Government. The cost of keeping such accounts of a State as are covered by the Initial and Subsidiary Accounts Rules issued under paragraph 11 (3) of the order is a charge of the State concerned. Similarly, if in any State the Comptroller and Auditor-General is relieved of the responsibility for the keeping of the accounts of any particular service or department of a State Government in pursuance of paragraph 11 (2) of the order, the cost of keeping such accounts will be a liability of the Government of the State.

Incidence of Expenditure involved in keeping the accounts of a State, in so far as the responsibility for keeping such accounts remains with the Comptroller and Auditor General is a

(A) Charge of the State Government concerned

(B) Charge of the Central Government

Government concerned

(D) None of these

(vii) The maintenance of the internal accounts of a department of a State is part of the ordinary duties of a State Government and is therefore a responsibility of the State concerned. Thus, if the Comptroller and Auditor-General is asked to scrutinise or advice on the modification of an existing system of internal accounts kept in a department of a State, such work can be undertaken by him on a “consent” basis and on specified terms and conditions as in Rule (v) above.

IX. Incidence of Grants of Land and Alienation

State Government receive compensation from the Central Government for all grants of lands and assignments or remissions of land revenue sanctioned on or

118

after the 1st April, 1921 in favour of officials and non-officials in recognition of exceptional services rendered by them to the Central Government.

1 The value of compensation for grants of land, etc., by the Defence Department should be debited against the Defence Services Estimates.

2 All special pensions and Jagirs in the form of assignments of land revenue sanctioned for Military Officers on a date previous to the 1st April, 1921 under the Government of India Special War Rewards scheme should also be debited to the Defence Services Estimates.

X. Incidence of the Cost of Police Functions on Railways including the cost of protecting Railway Bridges

Police functions in Railways are divided into three categories:

(a) Crime—for which Civil Governments are entirely responsible and the expenses of which these Governments have to pay;

(b) Order—for which Civil Governments are responsible but the expenses of which Railways have to pay; and

Who has to bear the expenses required for the function 'order in Railways?
(A) Railway
(B) Civil Governments
(C) Military
(D) None of these

Special requisitions on the Police by Railways for (c) must be paid for by the latter; special requisitions for (a) beyond what a Civil Government considers necessary should also be debited to Railways. But Railways cannot be called upon to pay for special measures under (a) which a Civil Government considers necessary.

🆀 Police functions in Railways are divided into how many categories?

A:-five

B:-two

C:-four

D:-three

Correct Answer:- Option-D

2. The following rules regulate the incidence of the cost of protecting Railway Bridges:—

(1) Railway Bridges, in common with Railway goods and the premises, will ordinarily be protected by watchmen in the employ of the Railway concerned.

(2) In the event of the replacement of these watchmen by military or police guards—

(a) When the services of the military or police guards are placed at the disposal of the Railway at the request of the Railway Administration, the cost of

119

the guards will fall upon the Railway.

(b) If the substitution is made on general grounds of Government policy and the services is taken over by the Police, Defence Services or other public services department as part of their regular duties, the charges will fall upon the Government and will be debited to Police, Defence services or the public department concerned, as the case may be.

XI. Incidence of the Cost of (1) Forest Surveys carried out by the

Survey of India, and (2) Forest Maps prepared by that Department

The rules governing the Incidence of the Cost of (1) Forest Surveys carried out by the Survey of India, and (2) Forest Maps prepared by that department are given in Chapter IX of the Survey of India Hand Book of Topography.

XII. Incidence of the Charges relating to the Maintenance and

Demarcation of and Disputes over Boundaries

The incidence of these charges between a foreign country and India is regulated by the following principles:—

*1. (a) Maintenance.—Half the maintenance charges will be borne by the Central Government the other half being recovered as far as practicable from the Foreign Country, failing which the Foreign Country’s share will also be borne by the Central Government.

(b) Demarcation and disputes.—Charges relating to demarcation of boundaries and boundary disputes will be borne by the Central Government under Entry 10 of the Union List, subject to such recovery as may be made from the foreign country.

Note:—1. The arrangement in (a) above in its application to Nepal will be subject to special arrangements worked out in consultation with the Nepal Government.

Note:—2. The share of the Bhutan Government for maintenance and demarcation of, and disputes over, boundaries will be borne by the Central Government for the present.

*Substitution G.O. (P) 37/85/Fin. dated 29-7-1985.

120

2. Where streams or other water courses form the boundary and where the ordinary principle of median line applies, the Government concerned (i.e., foreign country or India) will bear the cost of maintenance of the boundary line on its side. Where a separate set of survey marks is maintained by each of the two Governments on its side, the cost of the maintenance of the survey marks should be borne by the Government concerned.

D. RECEIPTS

XIII. Incidence of Leave Salary and Pension Contributions recovered

in respect of Government servants lent on Foreign Service

Contributions towards leave salary and pension recovered on behalf of a Government servant in Foreign Service are creditable to the Government (Central or State) under which he was permanently employed at the time of his transfer to foreign service.

2. Contributions towards leave salary and pension of military officers and others in permanent military employ including those in temporary civil employ should be adjusted in the Defence Service Accounts, while the contributions in respect of such offices in permanent civil employ should be credited to Civil Estimates. When a Government servant on whose behalf the contributions are received belongs to the Posts and Telegraphs Department or Railways the credits should be passed on the department concerned.

(1)The payment of leave salary and allowances in respect of Earned Leave Surrendered by the State Government Employees on deputation to the Central Government will be the liability of whom?

(A) The State Government

(B) The Central Government

(D)None of these

Correct Answer:-(A) The State Government

(2)In the case of deputation of a Government servant who is governed by the Contributory Provident Fund Rules, Government contribution for the period of deputation is payable by which Governments?

(A) The borrowing Government

(B) The Lending Government

(D) None of these

(3)When the services of a Government servant are lent by one Government to another, the transit pay and allowances including travelling allowances while he is leaving the new service shall be debited to which Government?

(A) The Lending Government

(B) The Central Government in any case

(C) The borrowing Government

(D) Shared by both the lending and borrowing Governments

(4) When Military troops are employed by State Governments for duties. On occasions of calamities of nature such as fire, earthquakes, floods, famines etc. the State Governments will be liable to bear which costs, unless they are waived by the Central Government for any exceptional reasons?

(A) The complete cost of the force including ordinary pay and allowances

(B) All extra cost involved in the way of transport, equipments etc., and all extraordinary expenses in the shape of special pay or the supply of stores to the personnel engaged.

(D) None of the above

(5) Besides the audit of expenditure from the revenues of the Union and of the States and of certain accounts, as per Article 149 of the Constitution and section 13 (1) of the DPC Act; the Comptroller and Auditor-General may be entrusted with the audit of the accounts of any other authority or body' by or under any law made by Parliament under the provisions of Article 149 of the Constitution. The cost of such an audit is recoverable from whom?

(A) The Central Government

(B) The State Government concerned

(C) The authority or body whose accounts are audited

(D) No cost is recoverable in respect of such audits

(6) Who will bear the cost of audit where the comptroller and Auditor General is the sole auditor for a local body/institution, whether under any law made by Parliament under Article 149 of the Constitution or on consent basis?

(A) by the State Government

(B) by the Central Government

(C) by the local body/institution where CAG is the sole auditor

(D) CAG conducts the audit free of cost

(7) Incidence of Expenditure involved in keeping the accounts of a State, in so far as the responsibility for keeping such accounts remains with the Comptroller and Auditor General is a

(A) Charge of the State Government concerned

(B) Charge of the Central Government

Government concerned

(D) None of these

(8) Police functions in Railways are divided into how many categories?

(A) five

(B) two

(D) three

(9) Who has to bear the expenses required for the function 'order in Railways?

(A) Railway

(B) Civil Governments

(D) None of these

(10)The payments of leaves salary and allowances in respect of earned leave surrendered by the State Government employees on deputation to the Central Government will be the liability of Government

(A) Central Government

(B) State Government

(D) will be equally shared by the central and the State Government

(11) Details to be given to Accountant General regarding the deputation of Govt. employees are explained in ... ..........of Kerala Account Code Volume 1

(A) Article 42 Annexure - I

(B) Art. 35 Appendix - B

(D) Art. 29 Appendix -III-A

(12) (A State Government Officer of P.W.D was posted on deputation to a State Government owned Public Sector Undertaking. Who is the officer authorised to note the rates of leave salary contribution in his service book ?

(A) Head of Office, where the officer was working prior to deputation

(B) Head of Office of the Public Sector Undertaking

(D) Audit Officer

(13)A State Government officer on deputation to the Central Government surrendered earned leave for 30 days in March 2018. Who is liable to pay the leave salary?

(A) State Government

(B) Central Government

(D) None of the above

(14) In the case of deputation of a Government servant who is governed by the Contributory Provident Fund Rules, Government contribution is payable by which Government ?

(A) The Borrowing Government

(B) The lending Government

(D) None of the above

(15)As per standard terms of deputation by temporary transfer, a State Government servant sent on deputation to another State Government or Central Government will be eligible for medical attendance benefit under the rules of which Government ?

(A) Central Government

(B) Lending Government

(C) Borrowing Government

(D) None of these

(16)The C&AG is responsible for the audit of all expenditure from revenues of the Union and of the States. Cost of this function is borne by which Government?

(A) The State Governments

(B) Central Government

(D) Fifty percent

(17) Who will bear the cost of audit where the C&AG is the sole auditor for a local body/institution, under Article 149 of the Constitution or on consent basis

(A) By the State Government

(B) By the Central Government

(C) By the local body institution

(D) Free of cost

(18)The C&AG may be entrusted with the audit of accounts of any other authority or body' by or under any law made by Parliament under the provision of the Constitution. Cost of such an audit is recoverable from which Government/ Authority?

(A) The State Government concerned under which the body or authority is functioning

(B) Borne by Central Government

(D) From the authority or body whose accounts are audited

(19)Who will bear the cost of audit where the C&AG is the sole auditor for a local body/institution, under Article 149 of the Constitution or on consent basis

(A) By the State Government

(B) By the Central Government

(C) By the local body institution

(D) Free of cost

(20) Incidence of Expenditure involved in keeping the accounts of a State in so far as the responsibility for keeping such accounts remains with the C & AG is a :

(A) Charge of the State Government

(B) Charge of the Central

(D) None of the above

(21)Contributions towards leave salary and pension recovered on behalf of a Government servant lent for Foreign Service are creditable to:

(A) Government under which he will be employed on deputation

(B) Government under which he was permanently employed before deputation.

(D) None of the above

3 comments:

pekkadamMay 29, 2021
Police functions in Railways are divided into how many categories?
A:-five
B:-two
C:-four
D:-three
Correct Answer:- Option-D
pekkadamMay 29, 2021
Incidence of Expenditure involved in keeping the accounts of a state, in so far as the responsibility for keeping such accounts remains with the Comptroller and Auditor-General is ________?
A:-A charge of the State Government concerned
B:-A charge of the Central Government
C:-Shared among the central government and the state government concerned
D:-None of these
Correct Answer:- Option-B
pekkadamSeptember 29, 2021
The payments of leaves salary and allowances in respect of earned leave surrendered by the State Govt employees on deputation to the central Govt will be the liability of _____ Govt

A:-Central Govt
B:-State Govt
C:-as mutually agreed upon
D:-will be equally shared by the central and the state govt.
Correct Answer:- Option-B
APPENDIX III, Local Ruling(2).7

Note: only a member of this blog may post a comment.

Pages

APPENDIX III

PRINCIPLES AND RULES REGULATING THE DISTRIBUTION OF CERTAIN CHARGES AND RECEIPTS BETWEEN GOVERNMENTS

A. INTRODUCTORY

Local Ruling

B. PAY, ALLOWANCES, PENSIONS, ETC.

II. Incidence of Leave Salaries

III. Incidence of the Cost of Passages

IV. Incidence of Pensions

II. Pensions sanctioned on or after 1st January 1942—

III. Pensions sanctioned on or after 1st April 1935:

VI. Incidence of Government Contribution to Indian Civil Service Family Pensions

X. Incidence of the Cost of Police Functions on Railways including the cost of protecting Railway Bridges

D. RECEIPTS

3 comments:

PRINCIPLES AND RULES REGULATING THE DISTRIBUTION OF
CERTAIN CHARGES AND RECEIPTS BETWEEN GOVERNMENTS

VI. Incidence of Government Contribution to Indian
Civil Service Family Pensions