Rule 112 — GFR 2017
Original Rule Text
Rule 112
Criteria in determining whether a
particular claim is covered by the
reciprocal arrangement. The significant
criterion
in
determining
whether
a
particular claim is covered by the
reciprocal
arrangement
mentioned
above, will be that the claim shall be both
petty and of an occasional character and
shall cover services rendered and not
supplies made unless the latter forms
part of service. The term “service
rendered” will be taken to mean an
individual act of service, like providing
police escort to a high dignitary and will
not apply to supply of stores etc. Claims
relating to Commercial undertakings
under the Government of India or the
State Governments such as those of the
Railways, the Department of Post, the
Electrical undertakings, etc., shall fall
outside the purview of the proposed
reciprocal
arrangements
and
shall
continue to be settled as hitherto.
If a doubt arises as to whether a particular
claim would fall within or outside the
purview of the proposed arrangement, it
shall be decided by mutual consultation.
The above arrangements will remain in
force without any time limit in respect of
all State Governments.
What This Means
Imagine you're a government officer, and another government department provides a very small, one-time service to your office. Rule 112 tells us when we don't need to go through the hassle of formal billing and payment for such services. This 'reciprocal arrangement' is for claims that are both minor in cost ('petty') and happen only occasionally, not regularly. Crucially, it only applies to actual services provided, like a police escort for a VIP, and not to the supply of goods like office furniture or stationery, unless those goods are an inseparable part of the service itself. For instance, if a police vehicle uses a small amount of fuel during an escort, that fuel is part of the service.
However, this rule does not apply to government-run commercial entities like Indian Railways, the Department of Post, or electricity boards. These organizations operate on commercial principles and must always raise bills and settle payments formally, just like any private business. So, if you use a train service or send a parcel via post, you must pay for it.
The main idea is to avoid unnecessary paperwork for trivial inter-departmental transactions that are purely service-oriented and infrequent. If there's ever a doubt whether a particular claim fits these criteria, the departments involved should discuss it and come to a mutual agreement. These arrangements are permanent and apply to all State Governments without any expiry date.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1This rule applies to claims that are both minor ('petty') and occur only occasionally.
- 2It covers services rendered, such as providing an escort, but generally not the supply of goods, unless the goods are an integral part of the service.
- 3Government commercial undertakings like Railways or the Department of Post are excluded and must always settle claims formally.
- 4Any doubts about a claim's eligibility under this arrangement should be resolved through mutual consultation between the involved parties.
- 5These reciprocal arrangements are permanent and apply to all State Governments without any time limit.
Practical Example
Consider a situation where the District Police Department (a State Government entity) provides a brief security detail and traffic clearance for a visiting Joint Secretary from the Ministry of Finance (a Central Government entity) who is on an official tour to inspect a project. The service involved a police vehicle for about an hour and two constables, incurring a very minor fuel cost of approximately Rs. 450 and a small amount of overtime for the personnel.
Under Rule 112, this claim for the police escort service would likely be considered 'petty' and 'occasional'. Since it's a service rendered and not a supply of goods, the District Police Department would typically not raise a formal bill to the Ministry of Finance. Instead, it would fall under the reciprocal arrangement, simplifying administrative processes and avoiding unnecessary inter-departmental billing for such a minor, one-off service.
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.