Para 4.3.10 — MSO (Audit)
Original Rule Text
4.3.10 Refunds of revenue are usually classified in detail the same manner as revenue receipts but the amount of refund is required to be taken in reduction of revenue receipts under the major head concerned. It should be seen in Audit that:
(i) all refunds have been authorised by competent authority;
(ii) schedules in respect of refunds made by the Divisional Officer in compliance with orders of a court of law remitting a fine previously credited to Government are accompanied by the original orders of the court as envisaged in
Note 3 below Article 230 of the Account Code, Volume-III; and
(iii) the amount in respect of each refund was available from the original receipt to which it pertained and a suitable note specifying the amount refunded has been recorded against the entry of receipts in the relevant receipts schedule.
- Schedule of Works Expenditure
What This Means
Revenue refunds must be classified in the same detail as revenue receipts and deducted from the revenue receipts under the relevant major head. Audit must verify three things: that refunds are authorized by competent authority, that refunds of court-ordered fine remissions are accompanied by the original court order, and that for each refund, the original receipt amount was sufficient and a note recording the refund has been made against the original receipt entry in the receipts schedule.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Revenue refunds are classified like revenue receipts but reduce the receipt amount
- 2All refunds must be authorized by competent authority
- 3Court-ordered fine refunds require the original court order
- 4Each refund must be traceable to an original receipt with sufficient balance
- 5A note specifying the refund amount must be recorded against the original receipt entry
Practical Example
A PWD division refunds Rs 20,000 to a contractor as excess water charges collected earlier. The Central Audit Party checks that: (1) the Divisional Officer authorized the refund, (2) the original receipt of Rs 50,000 water charges is identifiable in the receipts schedule, and (3) a note stating 'Rs 20,000 refunded vide voucher no. 45/Mar' has been recorded against the original Rs 50,000 receipt entry. In a separate case, a court orders refund of a Rs 5,000 fine — the auditor verifies that the original court order accompanies the schedule.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must refunds be taken in reduction of receipts rather than shown as expenditure?▼
Why is a note required against the original receipt entry?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.