PC 16

Appendix to Central Public Works Account Code

1. All work of Irrigation, Navigation, Embankment, Drainage and Water Storage are primarily classified into-
two sections
2. The two sections under into which all work of Irrigation, Navigation, Embankment, Drainage and Water
Storage are primarily classified-(1) Irrigation and (2) Navigation, Embankment and Drainage
3. Water Storage works are considered under-Irrigation Work
4. All work of Irrigation, Navigation, Embankment, Drainage and Water Storage are classified into-Productive
and Unproductive Works
5. Work is said to be productive when- revenue derived from it will, within TEN YEARS after the probable date
of its completion, repay the annual interest on capital invested calculated at “such rates as may be determined by
the Government from time to time.
6. Work is said to be unproductive when-fails to meet the above criteria
7. Capital invested includes- (1) direct charges (2) indirect charges and (3) all arrears of simple interest
8. Arrears of simple interest- balance of total interest over total net revenue.
9. In proforma Account Betterment levy is treated as-Reduction of Indirect Capital Charges
10. In Administrative/General Account Betterment levy is treated as-Indirect Receipt
11. When a work has been classified as Productive or Unproductive it will retain its classification unchanged
during the year- ELEVENTH, TWELFTH AND THIRTEENTH years after the closure of its construction estimate.
12. Classification of work from productive to unproductive and vice versa shall be done on the basis if- the work
fails or starts to yield the relevant return in three successive years as the case may be.
13. The Local Administration may postpone the transfer of a work from one class to the other in cases in which
it is satisfied that its success or failure is due-to purely transitory causes.
14. The transfer of a work from the productive to the unproductive category or vice versa will affect the
recording of-all future transactions in connection with it and no adjustment will be made in the general account in
respect of past transactions but the necessary transfer will be effected by the Pay and Accounts Officer in the
Proforma Accounts of works in question.
15. When Capital bears charges on account of restoration of damages caused by extraordinary casualties, such
as flood, fire, etc. and such charges should be recorded under a separate head-“Extraordinary Replacements”.
16. All charges for maintenance and working expenses which embrace all expenditure for the working and
upkeep of the project-Revenue
17. Classification of charges into Capital & Revenue in case of renewals and replacements of existing works
(A) When cost exceeds the original works by Rs. 1000 and it brings substantial improvement to original
work- (i) Charges equal to the cost of original work-Revenue (ii) Balance to- Capital Section
(B) When cost does not exceed the original works by Rs. 1000- all charges to revenue whether renewal or
replacement brings substantial improvement to original work or not
(C) When cost exceeds the original works by Rs. 1000 but does not bring substantial improvement to
original work-Revenue
18. Charging of Addition, Extension or Improvement in a Irrigation/Navigation Projects (Commercial)
(A) Capital-when exceeding 1000/- on remunerative and non- remunerative but essential for full
development for the project
(B) Revenue-(i) When does not exceed 1000/- even remunerative and non- remunerative but
essential for full development for the project
(ii) Irrespective of amount on works which are neither remunerative in themselves nor
considered necessary for the development of the project shall be charged to the Revenue
account.
19. Major Head for Capital Outlay on Power Project-4801
20. Recording of expenditure on
(A) Productive Work-Separately for Capital and Revenue charges
(B) Unproductive work of quasi commercial nature- Separately for Capital and Revenue charges
(C) Unproductive work of too small amount to maintain separate account- All charges are recorded under
revenue section and considered as non-commercial work
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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
21. “Miscellaneous expenditure” upon the preliminary survey of new projects and also for the cost of famine
surveys required for the preparation of famine programmes are included in the category of-Unproductive works

Statement B

1. Works expenditure of Irrigation, etc. major head falls under-Three heads (“1. Works”, 2. “Extensions and
Improvements”, and 3.“Maintenance and Repairs”)
2. Each of these minor heads is divided into sub-heads- (1) Head Works (2) Main Canal and Branches (3)
Distributaries (4) Drainage and Protective Works (5) Water courses (for “Works only) (6) Special Tools and Plant (for
“Works” only) and (7) Losses on Stock.
3. Under the minor head “Maintenance and Repairs” an eighth head may be opened-“Compensation
4. All works expenditure relating to Main Canal and Branches may be divided into-
(A) Main line of a canal, (B) each of its branches separately
5. Expenditure relating to distributaries may be grouped for- the distributaries belonging to the main line of
the canal and to each of its branches separately.
6. When land is taken up for two or more of these sub-divisions i.e. Head Works, Main Canal and Branches,
at the same time, its cost-must be divided in the best way practicable
7. In the case of Storage Projects all works connected with supply channels to feed the head reservoir come
under- Head Works
8. Water-power installations at the head works of a canal, head locks and head regulators of main and branch
canals, fall under the Head- “Main Canal and Branches”,
9. When a Canal or a distribution channel therefrom and a drainage in connection with it, are planned
simultaneously and the two works intersect, the cost of the crossing should be charged to-“Drainage and Protective
Works”
10. Building required for the general purposes of a Canal system such as Workshops, headquarters, station,
etc. are chargeable to “Main Canal and Branches.”
11. The head “Watercourses” is not necessary in the case of the minor head- “Extensions and Improvements”
and “Maintenance and Repairs”
12. The head ‘Losses and Stock’ is intended for all general losses on stock- which cannot be attributed to any
work, the accounts of which are open.
13. The head special Tools and Plant is further sub-divided into-three detailed heads namely (i) Gross
Expenditure (ii) Deduct recoveries (iii) Net expenditure
14. Gross Expenditure is intended for-collection of the aggregate cost of the special Tools and Plant at one
place and the Deduct Recoveries- for the record of the recoveries on account of special Tools and Plant which are
taken in reduction of expenditure.

Statement C

1. Survey & preliminary Expenses-Work and so not appeared under Extensions and Improvements”, and
“Maintenance and Repairs.”
2. Compensation for taking permanent or temporary possession of land required for the purposes of the work
is accounted for under the sub-head-Land
3. The term “Compensation” includes-the payment for the land itself, payments for buildings, trees, crops,
etc. and cost of special land acquisition establishment
4. Sale proceeds of wood, building materials etc. obtained on cleaning of land should be taken-in reduction
of the charge
5. If any buildings acquired with the land are used as residences or otherwise let out they should be brought
on- the Register of Licence Fees of Buildings and Lands, Form CPWA 49, and licence fees/rents realized should be
treated as ordinary licence fees/rent receipts.

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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
6. Permanent and temporary buildings (including staff quarters, offices workshops, stations, etc., but
excluding buildings for water power) and station drainages, roads, gardens enclosure-walls, conservancy works,
etc., pertaining to buildings individually or collectively-Under the sub-head BUILDING
7. Municipal taxes payable by Government and rents and buildings hired by Government shall be accounted
for under-Building
8. Gardening charges in connection with buildings-do not fall under the head Plantation but will fall under the
head Building
9. (1) experiments (2) Works in connection with irrigation outlets not debitable to the head “Water-
courses”(3) distant marks (4) boundary pillars-Misc. Head
10. Minor works constructed on the bank of canals or distributaries for the direct delivery of water-Misc. Head
11. in the case of original works and of extensions and improvements, charges for compensation not debitable
to any other detailed head-Misc. Head
12. All repair works prior to the opening of the revenue account for the project or the section concerned. This
appears only under “Works”-Maintenance

Statement D

1. Minor Heads for establishment charges (I) CE (II) Special office (III) SE and other Special Officer not
mentioned in II (IV) EE (V) Medical (VI) Special Survey (VII) Special revenue (VIII) Deduct Recoveries
(IX) Lump-sum charges creditable to other Govt./Departments and (X) Pensionary Charges
2. The sub-division Pensionary Charges in respect of Irrigation-2701 and 4701
2. The general principles regulating the classification and incidence of Pay, Allowances, Leave Salaries, etc. of
Government servants are contained in-Government Accounting Rules 1990.

Statement E

1. The general directions for regulating the exhibition of recoveries of expenditure in Government account
are given in GAR 1990.
2. All recoveries of expenditure will be taken as-reduction under the concerned Service head irrespective of
whether they relate to overpayments pertaining to the current year or to any previous year.
2. Recoveries under stock and other suspense account should be treated as reduction of gross expenditure.
29. The recoveries of expenditure on work in progress comprising, inter-alia, sale proceeds of surplus materials
and plant acquired specially for any work or of materials received from dismantled structures, may likewise be
treated as-reduction of expenditure, irrespective of whether the estimates for the works made allow for such
recoveries or not.
30. Components of department charges-(1) Establishment (2) Tools & Plant (3) Audit and Accounts Charges
and (4) Pensionary Charges
31. Accounting of Establishment and Tools and Plant charges-
(A) from other Departments of the Union Government-Reduction of expenditure (D & A & Tools and Plant)
(B) All other recoveries (Local Body/Non-Govt.) should be treated as-revenue receipts under the major head
concerned.
32. Pro-rata share of the charges for joint establishment and tools and plant-are calculated-at the close of year
and will be accounted for as reduction of expenditure under D&A and T&P)
33. Recoveries on account of charges for leave and pensions:-
(A) Where leave charges and pensionary charges are separable-in respect of Civil Work-Pensionary charges
(0071) and leave charges (0059/1054/0216)
In respect of irrigation work-Pensionary charges (0700/0701/0702 in case of revenue account and
reduction of capital outlay in case capital major Head) and leave charges (0700/0701/0702)
(B) Where leave charges and pensionary charges are combined-Civil Works (0071) and in case of irrigation
work (revenue receipt 0700/0701/0702)
34. Receipts and recoveries on Capital Account in so far as they represent recoveries on expenditure previously
debited to a capital major head, should be taken in- reduction of expenditure under the major head concerned.

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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
35. For convenience of accounting Receipt and recoveries on capital account should be treated as- revenue
receipts in the first instance and booked as “Receipts and Recoveries on Capital Account.” At the end of the month
they should be deducted from the account of the division or sub-division of the major head concerned in a lump-
sum.
36. The recoveries of expenditure which are finally creditable as revenue receipts, should be recorded under
the minor head “Recovery of Percentage charges” of the major head “0059” or “0071” as the case may be, while
those which are adjustable in reduction of expenditure under the capital major head, should be posted as “Deduct
Establishment charges transferred pro rata to other capital Major Heads” under the minor head “Direction and
Administration” of the capital major head concerned.
37. Recoveries on account of cost of audit and accounts-
(A) For work done for Railways, Defence Services, Postal or Telecommunication Department should be
treated as reduction of expenditure under “2016 – Audit”.
(B) for non-Government bodies or individuals, such recoveries should be adjusted as receipts under the
Major Head-0070

APPENDIX 3

1. In respect of irrigation work the liability of Government being confined to the provision of the- main canal
and of such branches and major and minor distributaries as decided by the competent authority
2. Cultivator liability will be for-construction of the necessary water courses or to bear its charges
3. Works of improvements and repairs to water courses and to construction and repair of bridges, culverts or
other works that may be required for the passage of the water of such water courses across any public road,
drainage channel etc. will be the liability of-Cultivator
4. Works outlay on water-courses, which may be incurred by Public Works Officers, will fall under-3 categories
5. Categories of work outlay on water curses
(i) Recoverable from individual cultivators concerned in lump sums equivalent to the charges incurred on
behalf of each
(ii) Recoverable by a general levy, whether for a specified or indefinite period
(iii) Finally borne by the Government
6. Charges for Works outlay on water-courses recoverable by a general levy, whether for a specified or
indefinite period fall into two categories-
(a) When the actual recoveries are required to be set off against the outlay
(b) When the actual recoveries are not to be set off against the outlay
7. Charges for Works outlay on water-courses recoverable from individual cultivators concerned in lump sums
equivalent to the charges incurred on behalf of each is known as-Takavi Work
8. Charges for Works outlay on water-courses recovered by levy taking the form of a lump-sum recovery of
cost in one or more years-Receipt on capital account
9. Charges for Works outlay on water-courses recovered by the levy taking the form of an enhancement of
revenue-Revenue Receipt.
10. Recovery of outlay on water-courses where such recoveries have to be set off against the outlay, may be
taken in reduction of expenditure under the sub-head, “water-courses.” at the discretion of- Government
11. When the actual recoveries on account of charges of water-courses are required to be set off against the
outlay a suitable proforma account to be kept by-Pay and Accounts Office
12. The form of Proforma account being determined in consultation with the –Administrative
Ministry/Administrator concerned.

APPENDIX-4

1. Charges on account of general services like Establishment and ordinary Tools and Plant of a division or office
shall be accounted for under the-Minor Heads Direction and Administration and Machinery and Equipment
respectively under the Major Head 2059

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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
2. Charges for new supplies of, and repairs to articles of the Tools and Plant such as Scientific instruments and
drawing materials, camp equipage, motor cars, etc. in respect of Special Office shall be accounted for under the
Head-Contingency
3. Charges on account of Work-charged staff converted into regular Establishment shall be classified under-
Work Charged Establishment
4. Purely revenue establishment (zilladars, Amins, etc.) employed entirely on the management of irrigation,
etc., works and on the assessment etc. of connected revenue to the sub-division shall be treated as –Working
Expenses
5. Establishment employed for temporary period on famine relief works, to the minor head concerned under
the major head-“2245”
6. In case of doubt, whether any item of tools and plant should be classified as ordinary or special will be
decided by- the Chief Engineer, or other competent executive authority
7. The cost of tools and plant required for use on Famine Relief should be treated as-“special” and will be
classified under Famine work-2245
8. The stages in which distribution of the charges on account of gross expenditure on the common
establishments, of PWD Buildings and Road Branch is made-Two Stages
9. First stage of distribution of the charges on account of gross expenditure on the common establishments,
of PWD Buildings and Road Branch means-Distribution of charges to Capital Major Head.
10. Distribution of charges on account of gross expenditure on the common establishments, of PWD Buildings
and Road Branch to Capital Major Heads is made on-Percentage basis as determined by the Government
11. Percentage determined for distribution of charges on account of gross expenditure on the common
establishments, of PWD Buildings and Road Branch to Capital Major Head shall be current for at-least-Three (3)
years
12. Accounting entry for distribution of charges on account of gross expenditure on the common
establishments, of PWD Buildings and Road Branch to Capital Major Head is-Debit Capita Major Head and Minus
Debit Direction and Administration under 2059.
13. Adjustment of distribution of charges on account of gross expenditure on the common establishments, of
PWD Buildings and Road Branch to Capital Major Head is made-Monthly
14. The second and final stage of distribution of the establishment charges under “Direction and
Administration” below “2059 will be in respect of the works charged to the major heads-2216 and 3054 only
15. The second and final stage of distribution of the establishment charges under “Direction and
Administration” below “2059 will be in respect of the works charged to the major heads 2216 and 3054 only is
made on-Pro-rata basis
16. Adjustment of distribution of charges on account of gross expenditure on the common establishments, of
PWD Buildings and Road Branch to major heads 2216 and 3054 is made-at the close of year
17. Distribution will be according to works outlay recorded under these major heads (4216 and 5054) vis-à-vis
the total revenue expenditure on Public Works (Construction) in all Major Heads (2059) in the Revenue Section.
18. The pro-rata adjustment of charges on common establishment will be carried out by-Accounts Officer
19. The basis for determining the slab for levying the establishment charges shall be the-estimated cost of a
work subject to actual during the year
20. Departmental charges for Works, the cost of which is met from the detailed head “Grants-in-aid” under the
relevant programme minor head under the Major Head “2059 – Public Works- should be levied including pensionary
and audit charges
21. For works executed other than PWD, Administrative Ministry/Administrator concerned are authorized to
fix the percentage rates in consultation with the Accounts Officer, on condition that the percentages so fixed are -
not less than the actual average cost per Rs.100 of outlay on works in the Administrative Ministry/Administration
concerned during the previous five years.
22. The percentage fixed by Administrative Ministry/Administrator should be examined and readjusted, if
necessary, after consultation with the Accounts Officer once in every-Three (3) years
23. In calculating departmental charges in respect of works executed on behalf of Central & Commercial
concerns (including the Ministry of Defence), other Government and non-Government bodies or individuals- one
percent (1%) should be added on account of pensionary contributions
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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
24. An additional charge of one percent, should be recovered in respect of works done for Railways, Postal or
Telecom Department, All India Radio (except monitoring service), Department of Overseas Communication Service
and non-Government bodies or individuals to cover the cost of-Audit and Account charges
25. No share of general charges on account of establishment and tools and plant should be included in the
actual cost of works chargeable against- the Central Road Fund
26. The prescribed percentages charges may be remitted by the Administrative Ministry/Administrator
concerned in the case of non-Government works costing-Less than 1000/-
27. In the case of works costing Rs.1000 and over, the Administrative Ministry/Administrator concerned are
authorized to sanction- a cash contribution up-to the actual amount of establishment and tools and plant etc.,
charges leviable
28. For works done in workshops which are of a quasi-commercial character, percentage charges -should be levied
in all cases even when work is done for P.W. Divisions of the same Administration.
29. Establishment charges on the plea that a work involves little or no departmental supervision etc.-Should
not be excluded.
30. In the case of non-Government works on which tools and plant of the department are not used, percentage
charges on account of Tools and Plant- should not be levied
31. When the cost of land acquired through the district and revenue authorities- the prescribed percentage is
leviable on account of it when it is adjusted in the divisional accounts as part of the cost of a non-Government work
32. In the case of workshops of a quasi-commercial character, any other work, for which special establishment
is entertained, the Administrative Ministry/Administrator may fix an addition of such percentage, limited to- 5
percent of the cost of this establishment to cover supervision charges
33. The cost of special tools and plant (such as cranes, etc.) debited to a single head in the accounts may be
distributed over the several sub-heads of works in accordance with such methods as- the Administrative
Ministry/Administrator concerned may determine in consultation with the Accounts Officer.
34. In the case of works for CGHS necessary rebate @ 1% has to be given in Establishment Charges where-
architectural services are provided by Central Design Bureau of CGHS
35. Departmental Charges
Sl Component All Maintenance Construction Construction Construction
No. works and works costing works costing works costing
minor works up-to Rs. two between more than
costing up-to crores Rs. two and Rs. five crores
Rs.one lakh five crores
1 Establishment 22.5% 10.75% 7% 6%
2 Tools & Plant 0.75% 0.75% 0.5% 0.5%
3 Audit & Accounts 0.25% 0.25% 0.25% 0.25%
4 Pensionary 0.25% 0.25% 0.25% 0.25%
Total 03.75% 12% 8% 7%

APPENDIX-6

1. When store arrives in India through High Commission/Embassies abroad the head operated is –MPSSA
(129-8658)
2. Accounting entry for stores from abroad arrive-Debit (Work/Stock) and Credit MPSSA
3. The amount to be credited to MPSSA on the basis of the composite rate of exchange of-the month in which
the payment was made by the High Commission/Embassy abroad.
4. The amount taken into account is the amount based on-quantities actually received the amount being
determined by converting the invoiced sterling value into rupees at the composite rate of exchange for the month
in which the payment was made in High Commission/Embassies abroad.
5. If the month in which the payment was made in High Commission/Embassies abroad is not known, the
provisional composite rate of exchange is taken into account for the- month in which the stores were dispatched
from High Commission/Embassies abroad
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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
6. Debit for the payment for stores made in High Commission/Embassies abroad which will be calculated in
rupees at the composite rate of exchange for the month of payments is received in Division from-Accounts Officer
7. Adjustment entry when debit received from Accounts Office-Minus Cr. MPSSA (8658) and Credit
Remittance (8782)
8. Accounting entry in case the debit for the payments made in High Commission/Embassies abroad is
received before the arrival of the stores in the Division-Debit Contractor-OT/Advance Payment as the case may be
and Credit Remittance
9. Indian Charges mean-Balance of sea freight and carriage and incidental charges
10. Indian charges are levied by the-High Commission/Embassy
11. Indian Charges are borne by the-Work/Stock as the case may be
12. When debit for Indian Charges is received before the arrival of the stores in the Division-Debit Contractor-
OT/Advance Payment as the case may be and Credit Remittance
13. A surcharge levied by the High Commissioner/Embassy to cover- departmental expenses and marine
insurance
14. Surcharge leviable by the High Commissioner/Embassy is fixed by the-Government
15. Surcharge is calculated on-Invoiced price inclusive of Freight Charge
16. Where the contractor undertakes to deliver stores at an Indian Port and not at the Stores Offices abroad
the surcharge leviable will include- only for departmental charges
17. The extra charge for marine insurance covers-the risk and losses during the voyage to India and not losses
between the ship’s side and the shore.
18. When Stores imported from abroad for the Union Government, but eventually transferred to State
Governments etc.-An extra surcharge is levied in India that is credited as Other Receipt under functional major head
19. In making recoveries from the agents of vessels on account of short delivery of stores, the surcharge-should
not be added to the involved value of the stores (including freight).
20. The transactions relating to stores procured abroad should be recorded in Form- CPWA 67 Suspense
Register under two classes of purchases i.e. (1) Purchases for Stock and (2) Purchases for specific works
Appendix 7
1. 107-8658 CSSA for the settlement of inter-divisional transactions in Public Works Divisions w.e.f. 1.4.1993
has been replaced by procedure for “Advance Payment”.
2. CSSA is presently applicable for (i) Ministry of Defence and (ii) Cabinet Secretariat
3. Accounting under CSSA-Debit and clearance by minus debit
4. Advance Payment Accounting

Accounting Occasion Purpose Debit Credit

Entity
Indenting When Advance Store 2059-799 (Store Advance) 8782-PW Remittance
Division payment is made Work 4059- Work Advance 8782-PW Remittance
(works Abstract)
When Store Store 2059-799-Stock Minus debit 2059-799-Store
received Advance
Work 4059-Contractor-OT/ Minus Debit 4059- Work Advance
Material/ Final Charges (works Abstract)
Supplying When Advance is Stock 8782-PW Remittance Minus Debit
Division received 2059-799-Store Supplied
Work 8782-PW Remittance Minus Debit-4059 Work Advance
When Store Stock 2059-799-Store Supplied Minus Debit
supplied 2059-799-Stock
Work Debit-4059 Work Advance Minus debit Contractor
OT/Material
5. Accounting under MPSSA (129-8658)

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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)
Entity Occasion Purpose Debit Credit
Indenting When Store Stock 2059-799 Stock MPSSA
Division Received Work 4059- Contractor-OT/ Material MPSSA
When Payment Stock Minus Credit MPSSA 87872 PW Remittance
received Work Minus Credit MPSSA 87872 PW Remittance
6. Accounting under MPSSA (129-8658)-WHEN ADVANCE PAYMENT UP-TO 98% IS MADE TO PURCHASE
THROUGH DGS&D (Stock indented Rs. 100, advance made Rs. 98)
Entity Occasion Purpose Debit Credit
Indenting When Advance is Stock Minus Credit MPSSA (98) 8782-PW Remittance (98)
Division made (Payment for Purchase)
Work Minus Credit MPSSA (98) 8782-PW Remittance (98)
When Store worth Stock 2059-799 Stock (100) MPSSA –Payment for Purchase (98)
100 received MPSSA-Purchase pending Payment
(2)
Work 4059-Contractor- MPSSA –Payment for Purchase (98)
OT/Material (100) MPSSA-Purchase pending Payment
(2)
PAO Supply When consignment ____ 8658-101-PAO Suspense 8670-Cheque & Bill (2)
receipts is (2)
acknowledged
from Division
PAO When debit claim ____ 8782-PW Other 8670-Cheque & Bill (2)
(Division) from PAO Supply is Remittance (2)
receive
Indenting On receipt of PAO ____ Minus credit MPSSA- MPSSA- Payment for purchases
Division Memo Purchase pending Payment through DGS&D
(2)

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Prepared By Deepak Kumar Rahi, AAO (Patna/Bihar)