KartavyaDesk

Rule 123 - Inter-Departmental Charges | KartavyaDesk

GFR 2017

Original Rule Text

Rule 123 Inter-Departmental Adjustments. Save as expressly provided by any general or special orders, a Service Department shall not charge other Departments for services rendered or supplies made which falls within the class of duties for which the former Department is constituted. However, a commercial Department or undertaking shall ordinarily charge and be charged for any supplies made and services rendered to, or by, other departments of Government. Rule 124 Principles for division of Departments for purposes of inter-departmental

What This Means

Rule 123 of the General Financial Rules (GFR) 2017 deals with how different government departments handle financial transactions with each other. Essentially, it says that if a department is providing a service or supplying goods that are part of its normal duties, it generally shouldn't charge other government departments for those services. Think of it as internal teamwork – departments are expected to help each other out without always sending a bill. This promotes efficiency and reduces unnecessary paperwork within the government. However, this rule has an exception for 'commercial departments' or undertakings, which are expected to charge other departments for their services and supplies, just like any business would.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Service Departments generally don't charge other departments for services within their core duties.
  • •Commercial Departments/Undertakings DO charge other departments for services and supplies.
  • •The rule aims to promote efficiency and reduce internal billing within the government.
  • •Exceptions can be made by specific orders, overriding the general rule.

Practical Example

The Department of Personnel and Training (DoPT) conducts training programs for employees of the Ministry of Agriculture. Since training is a core function of DoPT, they generally wouldn't charge the Ministry of Agriculture for these training programs. However, if the Government Printing Press (a commercial undertaking) prints training manuals for the Ministry of Agriculture, they would charge the Ministry for the printing services, following standard commercial practices. Similarly, if the Central Public Works Department (CPWD) undertakes construction work for the Ministry of Culture, CPWD would charge the Ministry for the construction services.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What is a 'Service Department' in the context of Rule 123?▼
A 'Service Department' is a government department whose primary function is to provide services to other government departments or the public as part of its mandated duties. Examples include the Department of Personnel and Training (DoPT) providing training or the Central Public Works Department (CPWD) undertaking construction.
When would a Service Department be allowed to charge another department?▼
A Service Department can charge another department if explicitly allowed by a specific general or special order. This would be an exception to the general rule.
What constitutes a 'Commercial Department or Undertaking'?▼
A 'Commercial Department or Undertaking' is a government entity that operates on commercial principles, aiming to generate revenue and often providing goods or services that could also be provided by private sector companies. Examples include the Government Printing Press or a government-owned manufacturing unit.
Does Rule 123 apply to transactions between the Central Government and State Governments?▼
No, Rule 123 specifically addresses inter-departmental adjustments within the Central Government. Transactions between the Central and State Governments are governed by separate rules and agreements.
Where can I find the 'general or special orders' that might override Rule 123?▼
These orders would typically be issued by the Ministry of Finance or the specific department involved in the transaction. Consult the relevant department's financial regulations and circulars.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 123 of GFR 2017, under what circumstances is a Service Department generally NOT allowed to charge another department for services rendered?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

Need help understanding this rule?

Ask Niti — your AI assistant for GFR 2017 and other government rules