FREQUENTLY ASKED QUESTIONS:
1. What is the process for refund of EMD?
Ans. EMD is refunded to unsuccessfulbidders. For EMD that is remitted through IREPS portal, the refund process will be initiated once the tender is finalized and pay order is generated by the Executive Department for the refund of EMD to unsuccessful bidders. The EMD will be refunded by the Accounts Department upon 4 days from receiving the pay order.
2. What is the process for refund for Performance Guarantee and Security Deposit?
Ans. (A)If the Performance Guarantee and Security Deposit is submitted in the form of a financial instrument (such as FDR, TDR, Bank Guarantee) the physical copy of the financial instrument is sent to Accounts for safe custody and a corresponding IPAS entry is also initiated by the executive department for confirmation. Upon successful completion of work, as per the terms of the contract, an advice from the executive department, both physically and through IPAS, is sent to Accounts Department for returning of the financial instrument. submission of No claim and no due certificate is mandatory for refund of SD. However SD will be released as per the terms of the contract and after the completion of maintenance period, warranty period, etc.
(B) In case the PG or SD is paid through cash or online mode, the original Receipt Copy (as provided by the Books Section) should be sent to the Accounts Department from the executive department along with the advice for refund.
(C) In case the PG or SD is deducted through Bills to be paid to the contractor, a detailed breakup of the bill details in which such deduction was executed with an advice letter should be sent to Accounts Department form the Executive department through Pay Order.
3. How long will it take for the payment to be made for the bills submitted to the Accounts Department?
Ans. The original bill should be submitted to the Executive Department along with other mandatory documents (please refer to the terms of payment in the LOA or contract). Once the Bill is sent to the Accounts Department with all necessary documents and other requirements, the payment will be processed in 04 working days, subject to availability of funds.
4. What is the process of calculation of PVC?
Ans. PVC is paid quarterly based on the PVC formula as stipulated in the LOA or contract and applicable clause of GCC of works and services.
5. What are the common reasons for returning the bill from the Accounts Department ?
Ans. Though this list isn't exhaustive the absence of any of the following will lead to returning of the bill (A) Completion of the validity period of the contract (B) If the bill value exceeds the agreement value (C) Documents related to performance guarantee or SD are not submitted , both physically and virtually. (D) Non-compliance of GST rules(E) Incorrect Firm's Bank Account details (F) Lack of accuracy for levy of penalty as per the terms and conditions of the contract. (G) In case of GeM bills, consider GeM contract No. as the agreement No. (H) Incorrect allocation No. particularly for plan head bills. (I) arithmetical inaccuracy in the bill (J) Lack of submission of any other documents as mandated in the LOA or contract.
6. What are the various types of TDS deductions made in the bill?
Ans.
TDS is deducted under Income Tax Act 1961 @ 2% of Bill Value as explained below
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194C is applicable for works and Service contracts.
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194J is applicable for bills relating to medical treatment including bills from referral hospital
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In few cases, 194Q is also applicable if the turnover of the contractor exceeds the limit as per the Act and @ 0.1% on the amout exceeding the limit as per the Act.
TDS is also deducted under GST act @2% on payments made to the supplier of taxable goods and/or services
7. Are funds available for passing the bill ?
Ans. For plan head bills, fund availability certification is received for every bill from the Books and Budget Section. The Executive Section can also check the Works Register to ascertain the availability of funds before sending the bills to the Accounts Department. For all the questions related to availability of funds, you can contact the concerned executive department.
8. What is the process for reimbursement of GST due to statutory variation?
Ans. If there is any increase in GST after the contract or agreement is entered between the contractor and executive, the same will be reimbursed as per the guidelines from the Board. Currently, the contractor has to submit a GST calculaton sheet clearly showing the excess GST paid by the contractor because of statutory varaition. He also has to give a declaration that any ITC claimed by him due to any statutory variation is passed on to railways before claiming the reimbursement.
Note : GCC for works and services and IRS conditions for stores supply are invariably followed for bill payment, release of SD and PG, PVC payment, etc.
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