Para 19.15.1 — CAM

19.15 ACQUISITION OF STORES ON DEFERRED PAYMENT TERMS. 19.15.1 Under agreements/contracts entered into by the Government of India with foreign Governments/Suppliers abroad, equipment, stores, etc. are sometimes procured on deferred payment basis. According to the terms of such agreements/contracts specified sums are payable to the foreign Governments/Suppliers from time to time along with interest, if any, in terms of the conditions of the relative agreement/contracts. It has been held that the purchase of goods on credit while constituting a commitment to pay, does not ipso facto constitute a loan or borrowing. Accordingly, the full value of the equipment/stores procured on deferred payment terms or on supplier's credit should be brought to account immediately on receipt of the plant and equipment or stores in question. It will be done by debit to the relevant service major head of account with contra credit afforded to a suitable suspense head within the same service major head, as in the case of Public Works Department. The credit under the Suspense head will be relieved as and when actual payments are subsequently made to the suppliers/ foreign Government.