Rule 62 — GAR
Original Rule Text
62. Where losses are an inevitable feature of the working of a particular department, the major head of account under which the expenditure of that department is classified shall contain: separate descriptive heads under which such losses shall be recorded.
# CHAPTER 7 Miscellaneous Rules
Incidence of certain charges and receipts between Governments
What This Means
Rule 62 addresses the situation where losses are not aberrations but are instead a predictable and inevitable part of how a particular government department functions. For such departments, it would be misleading and administratively cumbersome to treat each loss as an exceptional event requiring separate treatment. Rule 62 provides a practical solution: the major head of account under which the department's expenditure is classified should contain specific descriptive sub-heads under which such losses are routinely recorded.
The practical effect is that these departments build their expected loss categories into their normal account structure. When the loss occurs, it is recorded under its designated sub-head as a matter of routine, rather than triggering a special enquiry or exceptional accounting procedure. Examples would include departments involved in post mortem activities, chemical testing, explosives, or any activity where some level of loss (of materials, value, or assets) is structurally inevitable.
Rule 62 also marks the boundary of Chapter 6 — Chapter 7 (Miscellaneous Rules) begins thereafter, covering topics like incidence of charges between governments, treasury accounts, departmental accounts, travelling expenses, classification under suspense, and sale proceeds of land and buildings.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Where losses are an inevitable feature of a department's work, specific descriptive sub-heads for those losses must be created under the relevant major head.
- 2This prevents each routine loss from being treated as an exceptional event requiring ad hoc accounting treatment.
- 3The loss category is built into the department's normal account structure at the planning/budget stage.
- 4Applicable to departments where losses are structurally unavoidable — e.g., chemical testing labs, explosive manufacturing, certain industrial departments.
- 5Rule 62 closes Chapter 6 on losses; Chapter 7 (Miscellaneous Rules) begins with Rule 63.
- 6The creation of these sub-heads requires coordination between the department, its accounts office, and the budget authorities.
Practical Example
The Government Opium and Alkaloid Works, which processes raw opium into pharmaceutical-grade alkaloids, inevitably loses a percentage of the raw material during chemical processing — this is a known, unavoidable production loss. Under Rule 62, the major head of account for this department (say '2853-Non-Ferrous Mining and Metallurgical Industries') contains a specific descriptive sub-head: 'Losses in Processing — Opium Alkaloid Works.' Each year, the calculated production loss (expressed in value) is debited to this sub-head routinely, without triggering a fresh exception report or special accounting procedure. The accounts office, the department, and the Budget Division have all agreed that this loss sub-head is a normal part of the department's account structure, ensuring clean, transparent accounting without bureaucratic disruption.
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.