Rule 39 — GAR
Original Rule Text
39. The: rules in this Chapter prescribe the conditions under which a department of a Government may make charges for services rendered or articles supplied by it: and the procedure to be observed in recording such charges in the: accounts of the Government concerned.
NOTE:- Criteria for the purpose of such adjustments in respect of the Central Government are laid down in Part: III of Chapter 16 (Rules 294 to 298) of the Central Government Compilation of the General Financial Rules, 1963.
What This Means
Rule 39 is the introductory rule of Chapter 4 of the Government Accounting Rules, which deals with recovery of charges when one government department provides services to another or supplies goods to another. The chapter establishes the conditions under which a department may make such charges and how those charges should be recorded in accounts.
The rule itself is largely an introduction and signpost. It states that the rules in Chapter 4 prescribe two things: the conditions under which a department may charge another department for services or supplies, and the procedure for recording such charges in the accounts. It also directs readers to an important related source: the criteria for Central Government inter-departmental adjustments are separately laid down in Part III of Chapter 16 (Rules 294 to 298) of the Central Government Compilation of the General Financial Rules, 1963. This cross-reference ensures that accounts officers look at both the GAR (for accounting procedure) and the GFR (for the financial conditions and criteria) when dealing with inter-departmental charges.
The practical significance of this framework is substantial. Government departments regularly provide services to each other — a printing department prints documents for other ministries, a medical department provides healthcare to employees of various departments, a survey organisation provides technical services. Whether these are treated as free services or chargeable transactions, and how the resulting entries flow through accounts, is governed by the rules in this Chapter (Rules 39 to 46).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Chapter 4 of GAR 1990 (Rules 39-46) governs recovery of charges for inter-departmental services and supplies.
- 2Rule 39 introduces the Chapter: it states that the Chapter prescribes both the conditions for making charges and the accounting procedure for recording them.
- 3For Central Government inter-departmental adjustments, the financial criteria are separately set out in GFR 1963, Part III, Chapter 16 (Rules 294-298).
- 4Accounts officers must read both GAR and GFR when dealing with inter-departmental charges — GAR covers accounting procedure, GFR covers financial conditions.
- 5The Chapter covers service departments, commercial departments, Defence services, and foreign/non-government bodies in subsequent rules.
Practical Example
The National Informatics Centre (NIC) under the Ministry of Electronics and IT provides IT infrastructure and support services to multiple ministries and departments. When NIC charges the Ministry of Health for hosting its hospital management system, the question arises: under what conditions can this charge be levied, and how does it appear in the accounts of both NIC and the Ministry of Health?
The accounts officer consults Rule 39 and is directed to the Chapter 4 framework for the accounting procedure, and to GFR 1963 Rules 294-298 for the financial criteria. The NIC's accounts will show an income receipt, and the Ministry of Health's accounts will show an expenditure debit — each under the appropriate head. The subsequent rules in Chapter 4 (particularly Rule 44, which deals with commercial departments) will determine whether NIC (as a commercial/near-commercial department) may charge and be charged. The principles from GFR govern how the charge is computed and whether monetary settlement is required.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.