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NATIONAL THERMAL POWER CORPORATION LIMITED
MANUAL ON PERSONNEL ACCOUNTING

November 2002
A.F.FERGUSON & CO. NEW DELHI
Manual on Personnel Accounting
Process No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
CONTENTS Process Introduction Maintenance of Employee Records Payment of employee leased accommodation Loans and Advances to Employees Other Personnel Payments Overtime Payments Other Personnel Payments - Leave Encashment Other Personnel Payments - Leave Travel Concession Other Personnel Payments Medical Reimbursement PF loan payment and recoveries Tour advances and submission of travel expenses claim Personnel Payments Others Transfer of employees generation of LPC Seperation - Final settlement Processing of Payroll and disbursement of pay Payment under NTPC Employees Family Economic Rehabilitation Scheme Processing of Payroll and disbursement of pay Executive Trainees (ETs) Determination of TDS Deposit of statutory dues and other payments INDEX OF FORMATS DESCRIPTION
Page No
2 4 8 12 14 16
19 24 27 33 35
38 41 46 48 49 52
Format No
PR/01
Employee Master Lease Master Reconciliation Statement of Lease Rent paid Loans and advances Sub ledgers Employees Loan/ Advances Ledger Overtime Statement No Dues Certificate Last Pay Certificate Schedule - C Final Settlement Statement Payroll Summary Salary Slip Calculation Slip MIR Formats Age analysis of outstanding Advances Medical Reimbursement Statement ABDH Schedule Statement of Entitlement claimed Gross Pay Variance Statement
PR/02 PR/03 PR/04 PR/05 PR/06 PR/07 PR/08 PR/09 PR/10 PR/11 PR/12 PR/13 PR/MIR/01 PR/MIR/02 PR/MIR/03 PR/MIR/04 PR/MIR/05 2
INTRODUCTION
This manual lays down the procedure to be followed in respect of payment of Salary and other personnel payments, payment and recovery of Loans and advances to employees and maintenance of employees records. This manual also deals with the payment of PF loans and recovery through payroll system, final settlement of employee dues on seperation from the organisation, determination, recovery and deposit of TDS on salary and other payments which are subject to levy of tax.
Process : Maintenance of Employee Records Process brief
Process No.: 01
This process lays down the procedure to be followed for maintenance of employee records. The records should be created on the appointment of the employee and should be updated on promotions, probation clearance, transfers, resignation, retirement or change in the status of the employee due to any other reason. The employee database should be maintained by the HR Department and the fields pertaining to payments and recoveries (on account of loans and advances, entitlements, etc) should be updated by the Establishment Finance Section (EFS) of the units / RHQs concerned and Corporate Centre. The record to be maintained in respect of Executive Trainees (ETs) has been separately dealt in Process No. 15. While discharging this function it is to be ensured that: An employee master has been created for all employees by the HR department Form-13 for transfer of PF/FPF/EPS from previous organization /RPFC if emplo yee joining NTPC was member of PF in previous organisation A copy of the validation report of the master creation/ updation is maintained as audit trail All data entry for master creation/ updation is checked before updation of masters The HR department serially controls each type of order generated in respect of employees
Departments / sections responsible Finance and Accounts Establishment Finance Section HR Department
Procedure: Maintenance of employee records S.No 1 Person Responsible Receive the copy of the office orders Establishment relating to appointment, promotions, . Section probation clearance, transfer, deputation, resignation, retirement, etc from the HR Department. Activity Freque ncy As when Remarks
and In respect of resignation/transfer/ study leave/ or for change in status of the employee due to any other reason the HR Department to update the system and inform the 2
S.No
Activity
Person Responsible
Freque ncy
Remarks same to Finance Establishment
Verify the changes made in the Establishment payroll master with reference to the . Finance order. Update the master in the system.
As when
and
Generate a Master Updation Report. Establishment Check the report against orders . Finance received during the month. Sign and file the report and employee wise documents.
Prior to processing of the payroll for the month.
Documents Records Document Title Appointment/transfer/ Promotion / any other letters/ sanctions/ orders etc. Employee master Master Updation Report Document Type I Format Ref Frequency As and when Distribution Establishment Finance Section -
R R
PR/01
As and when Monthly
Process: Payment of employee leased accommodation Process brief
Process No.: 02
This process lays down the procedure to be followed for payment of lease rent, deduction and deposit of TDS. While discharging this function it is to be ensured that: Lease rental are paid against lease agreement as per standard proforma Any amount paid in excess of the entitlement is recovered from the employees through the payroll Employee-wise records of the lease rentals are maintained. Tax is deducted as per the rates prescribed and is deposited with the authorities within the stipulated time Lease rental payments are periodically verified with the recoveries made from the employees (on account of the lease rental being more than the entitlement) Lease rentals on account of employees transferred to other units are paid only till the period of extension granted by the competent authority Lease rental payments in respect of transferred employees is transferred to the concerned unit through inter unit debit advices Lease master is updated with any new agreement /amendments to the existing agreements prior to processing of lease rentals for the month An updation report of all the amend ments to the master is maintained Consolidated report in respect of lease agreement terminated during the month is received from HR Department before processing of lease payment for the month i.e. by 1 st of the month
The HR Department should serially control the orders issued on account of lease rentals and should furnish a statement of the last serial order number issued for the month to the Establishment Finance Section 5 days prior to the end of the month. Departments/ sections responsible Finance and Accounts Department Establishment Finance Section HR Department
Procedure: Maintenance of employee lease records S.No 1 Person Responsible Receive the duly approved lease Establishment agreement/ revision to agreement/ Section approval for retention of leased accommodation/ termination of lease agreement Enter the relevant details in the system to update the lease master and salary master to determine recovery/payment of arrears, if any. Review the data in the system with the source documents and authorise the entry in the master. Generate a Master Updation Report. Review the changes in the master with the original source documents. Sign and file the report. Process the lease payment and generate: Employee-wise list of lease rent payable for the month, showing the following: Lease rent payable TDS amount Amount recoverable from the employee including arrears and excess rent Amount to be transferred to other units Advance lease amount paid/adjusted during the month A statement of lease rent paid during the month and previous month and lease recovery during the month and previous month. Review and ascertain the reasons for variations due to new lease, amendment of existing lease and termination of lease. Activity Frequency As and when Remarks
Establishment Section Establishment Section
As and when
Establishment Section
Monthly before processing lease payment. Month-end
S.No
Activity
Person Responsible
Frequency
Remarks
Generate the following:
Establishment . Finance JV to account for the rent payable, Section recoverable from the employees, TDS recoverable, adjustment of advance lease amount paid and the inter- unit debits, if any. (along with inter- unit advice) BPV for the amount payable to landlords Rent pay orders IUA for rent paid for employees transferred to other units Owner wise YTD in respect of rent paid, Tax deducted at source
Month-end
Forward the BPV and the JV to the competent authority as per IWA for verification and authorisation. Verify and authorize the JV and BPV as Establishment per IWA. Sign the hard copy of the JV . Section and BPV. Forward the BPV along with JV to Cash & Bank section for release of payment. Prepare the challan for deposit of the TDS Establishment with the authorities . Section Generate BPV for deposit of TDS. Forward the BPV along with Challan to the competent authority as per IWA for approval. Verify and authorize the Challan and BPV. Sign the hard copy of the BPV & challan. Forward the BPV along with challan to Cash & Bank section for release of payment. Receive the BPV for lease payment and TDS payment and release payment as per procedure detailed in manual on Cash &
Same day
Within the stipulated time
Cash & Bank section
Same day
S.No Bank. 9
Activity
Person Responsible
Frequency
Remarks
Receive the receipted copy of the challan Establishment from cash and bank section and file it Section
Same day
Document Records Document Title Lease agreement Rent pay orders Lease Master Reconciliation of rentals Document Type I O R Statement Format Ref PR/ 02 PR/ 03 Frequency As and when Month end Monthly Distribution Establishment . Section -
lease
Accounting Entries On payment of lease rent to the landlords Inter Unit A/C (For rent paid in respect of transferred employees) Rent paid for Co. leased Accommodation Income tax deducted at source Rent payable A/C Rent payable A/c Bank Account HRR recoverable account HRR account
Dr Dr Cr Cr Dr Cr Dr Cr
Recovery of lease rent (in excess of entitlement from salary) Salary and allowance HRR recoverable account Dr Cr
Process: Loans and Advances to employees Process brief
Process No.: 03
This process lays down the procedure to be followed for releasin g loans and advances to the employees. The loans should be sanctioned after verification of the repaying capacity (as determined with respect to the guidelines prescribed in this respect). Advances in the nature of loans Loans should be sanctioned to the employees as per the rules prescribed by the company. The various types of loans that can be availed by an employee (on fulfillment of the eligibility clauses) include: House Building advance (HBA) Multi Purpose Advance Conveyance Advance Personal Comp uter Advance Furniture Advance Cycle Advance
The loans should be recovered in the manner prescribed which are either by : recovering the principal amount first and then the interest component (as in the case of HBA, conveyance advance, personal computer advance, cycle advance) or recovering the total amount in fixed equated monthly installments (as in the case of multi purpose advance, furniture advance) In cases where the interest amount is recovered subsequently the interest accruals (on reducing balance) should be accumulated (except for cycle advance) The HR department should ensure that all the requirements for processing the advances have been fulfilled by the employee (say execution of mortgage, submission of title deeds, agreement with the surety, etc). In case of HBA, the HR department should also follow up with the employees to ascertain whether the employee has taken possession / occupancy and accordingly intimate the Establishment Finance Section to commence deductions as per the terms of the agreement.
Advances In addition to the above loans, there are various advances like medical advances, staff advances, advance against salary, etc. that can be availed by the employees. The advances are settled against the bills submitted in that regard.
While discharging this function it is to be ensured that:: Fresh advance is not released unless the earlier advance along with the interest, if any, has been recovered from the employee Advances are sanctioned only after fulfillment of all the laid down conditions Deductions on account of loans and advances are made as per the terms and conditions prescribed Interest on loans are accounted for on an accrual basis (except in case of cycle loan) The principle amount and the interest accrued are recovered during the service period of the employee Exception report on non recovery of advances are generated every month and reviewed for necessary action
Departments / sections responsible Finance and Accounts Department Establishment Finance Section HR Department
Procedure : Loans to employees S.No 1 Activity Receive the duly approved sanction and release order for the loans from the HR Department. For multi- purpose advances, receive the form directly from the employee Generate a BPV for release of the payment. Forward the BPV along with release order to the competent authority as per IWA for approval Verify the details in loan master from the sanction and release order and update the loan master. Verify and authorize the BPV. Sign the hard copy of the BPV. Forward the BPV along with Release order to Cash & Bank section for release of payment.
Person Responsible Establishment Finance
Frequency As and when
Remarks
Establishment Finance
Same day
The employee-wise loan ledger and the payroll master to be updated with the advances released as per the BPV
Same day
S.No 4
Activity Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank.. Recovery of loans Make deductio ns from the pay bill as per the terms of the loans.
Person Responsible Cash & Bank section
Frequency Same day
Remarks
Monthly
The employee ledger for loans to be updated with the deductions made from the payroll.
Update the interest on the principal amount outstanding calculated (as per the rule) in the employee subledger. Generate a JV to account for the interest accrued during the period.
Monthly
Documents - Records Document Title Sanction/ Release Order BPV Claim JV Loans/ Advances Sub ledger Employees loan/ advances ledger Age-analysis of outstanding advances Document Type I O I O R R R Format Ref PR/04 PR/05 PR/MIR/01 Monthly Frequency As and when As and when As and when As and when Distribution Establishment Finance Cash and Bank Section Establishment Finance Establishment Finance Establishment Finance Payroll Section
10
Accounting entries On payment of loans/ advance Loans Advances Bank Account Dr Dr Cr
On recovery of principal amount of loan/ advance from salary Salary & wages Loans Advances Interest accrual at year -end Interest Accrued Interest on employees loan On recovery of interest from salary Salary and wages Interest Accrued Dr Cr Dr Cr Dr Cr Cr
11
Process
: Other Pers onnel PaymentsOvertime payments
Process No.: 04
Process brief This process lays down the procedure to be followed for releasing overtime payments to employees. Overtime (OT) payments should be released as a part of the salary based on the statement received from the HR Department (Time Office). The HR department should get the OT statement approved by the concerned HOD/ GM. While discharging this function it is to be ensured that:: All overtime hours have prior approvals The overtime ho urs are as per the time office records The rates for payment of overtime are as per the prescribed Rules of the company The cummulative payments in respect of OT is within the entitlements of the employee/ as per the regulations in this regard
Departments/ Sections responsible Finance and Accounts Department Establishment Finance Section HR Department Time Office
Procedure: Overtime payments The OT hours for the employees should be entered in the system by the HR Department to generate the (employee-wise) overtime statement. Based on this statement the system should compute the amount payable along with the pay bill for the month at the rates as prescribed for OT payments. Based on the overtime hours details in the system a report on the overtime payments released should be generated to ensure that the overtime payments are within the Rules prescribed in this respect. Documents - Records Document Title Overtime statement Document Type I Format Ref PR/06 Frequency Monthly Distribution
12
Accounting entries On payment of overtime Overtime Salaries payable Salaries payable Bank Dr Cr Dr Cr
13
Process: Other Personnel Payments Leave Encashment Process brief
Process No.: 05
This process lays down the procedure to be followed for payment of leave encashment. Leave encashment amount is to be segregated into two parts; i) Amount for which income tax deduction has been claimed by the company ii) Amount for which income tax deduction is to be claimed by the company. Departments/ Sections responsible HR Department Finance and Accounts Establishment Finance Section
Procedure: Leave Encashment S.No 1 Person Responsible Receive the sanction order for leave Establishment encashment duly approved by the HR Finance Department Enter the relevant details (type of leave to be encashed, number of days of encashment, Period for which leave encashment pertains to etc) in the leave encashment module. Generate the amount payable and the tax implications thereof. Activity Frequency As when and Remarks
Same day Establishment Finance
Process for releasing the payment in for leave encashment through Salary or BPV or CPV. Forward the BPV/CPV to the competent authority as per IWA for approval. Verify and authorize the BPV/CPV. Establishment Sign the hard copy of the BPV/CPV. Finace Forward the BPV/CPV to Cash & Bank section for release of payment.
Same day
14
S.No
Activity
Frequency
Remarks
Receive the BPV/CPV and release payment as per procedure detailed in manual on Cash & Bank..
Same day
Documents - Records Document Document Type Title Sanction order for leave Order encashment BPV Voucher Format Ref Frequency As and when As and when Distribution Establishment Finance Cash and Bank Section
15
Process
: Other Personnel PaymentsLeave Travel Concession
Process No.: 06
Process brief This process lays down the procedure to be followed for payment of Leave Travel Concession (LTC) While processing the LTC claim/advance, it is to be ensured that: The amount is paid as per the Rules prescribed and as per the entitlements of the employee In case advance sanctioned against LTC is not utilized within one month and the unutilized part not refunded to the company within the stipulated period , second advance for the same (block) period is not paid
Departments/ Sections responsible Finance and Accounts Department Establishment Finance Section HR Department
Procedure: Leave Travel Concession S. No 1 Activity Receive an application for LTC from the employee duly approved by the HR Department. . Ensure that the advance amount requested is within the entitlements as per the Rules prescribed in this regard. Generate a CPV /BPV for making the payment. Forward the BPV /CPV along with a copy of the application to the competent authority as per IWA for approval Person Respons ible Establishment Finance Frequency As when and Remarks
Verify and authorize the BPV/CPV. Sign the hard copy of the BPV/CPV. Forward the BPV/CPV alo ng with a
Same Day
16
S. No
Activity copy of the application to Cash & Bank Section for release of payment.
Person Respons ible
Frequency
Remarks
4 5
Receive the BPV/CPV and release Cash & Bank payment as per procedure detailed in section manual on Cash & Bank. Processing of LTC bill and settlement of advance Receive the LTC claim of the Establishment employee (through HR Department) Finance Check the claim for the following : Establishment . Finance Supporting documents (i.e. proof of journey, other relevant documents) are attached Claim is as per the entitlement Enter the relevant details (persons travelled, journey period, place of travel, amount claimed, taxable amount etc) in the LTC module and generate the amount payable after adjustment of advances paid, if any. Generate a JV to account for the Establishment claim and a BPV/CPV for release of . Finance net amount payable. Forward the JV along with BPV/CPV to the competent authority as per IWA for approval. Verify and authorize the JV & BPV. Sign the hard copy of the JV & BPV Forward the BPV to Cash & Bank section for release of payment. Establishment Section
Same day
As and when Same day
Same day
Same Day
Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank.. Review the employees advances subledger Generate an age-analysis report of outstanding advance and forward the same to the payroll section for
Cash & Bank section Establishment Finance
Same day
Monthly
17
S. No
Activity making the necessary deductions from the payroll
Person Respons ible
Frequency
Remarks
Documents - Records Document Title Sanction order for LTC CPV BPV Employee Master Age-analysis of outstanding Document Type I O O R R Format Ref PR/ MIR/01 Frequency As and when As and when As and when As and when Monthly Distribution Establishment Finance Cash and Bank Section Cash and Bank Section Establishment Finance Payroll Section
advances
Accounting entries On payment of LTA advance LTC Advance Bank/ Cash Account On settlement of advances LTC Expenditure LTC Advance LTC Payable LTC Payable Bank Dr Cr Cr Dr Cr Dr Cr
18
Process
: Other Personnel PaymentsMedical Reimbursement
Process No.: 07
Process brief This process lays down the procedure to be followed for reimbursement of medical expenses. While discharging this function it is to be ensured that: Medical reimbursement claims are allowed only in respect of the employees and their dependents A list of dependents is available in the employee master The claim for medical reimbursement is approved by the competent authority as per DOP In case of claims for hospitalisation the payment is limited to the approved rates Medical advance, if any, is adjusted on processing of claims Income-tax (if applicable) is deducted at the prescribed rates from the payments to the hospitals as per the Act/Rules prescribed in this respect
Departments/ Sections responsible Finance and Accounts Department Establishment Finance Section HR Department Medical Cell
Procedure : Medical Reimbursement S.No Activity Medical claims by employees Receive the medical claims for reimbursements duly approved by the competent authority. Check the following: The releva nt supporting documents are attached Arithmetical accuracy of the claims Medical advances (if any) have been shown and adjusted in the claim form and cross check this with the employees advances ledger Generate a JV to account for the
Person Responsible Establishment Finance Establishment Finance
Frequency
Remarks
As and when Same day In case the payment is to be made with the salary follow the procedure for salary processing
19
S.No medical claim
Activity
Person Responsible
Frequency
Remarks
Generate a BPV for the net amount payable. Forward the JV & BPV to the competent authority as per the IWA . Update the perquisites on medical reimbursement in the payroll master. Verify and authorise the BPV and JV in the system and sign the hard copy. Forward the BPV to the cash & bank section for release of payment. Receive the BP V and release payment as per procedure detailed in manual on Cash & Bank..
Same Day
Cash & Bank section
Same day
5 6
Hospitalisation bills received from the hospital / Other Units Receive the hospitalisation bills duly Establishment As and approved by the competent authority Finance when Check that: Establishment Same day Finance The hospital is empanelled with the company and The treatment is for the specified ailment as approved by Income Tax Department Rates charged (for the treatment, room rent, etc) are as per the approved rate Whether tax is to be deducted on payment to the hospital Whether facility availed in the hospital is as per entitlement of the employee Whether any recovery to be made from employee for availing of facilities beyond entitlement The F&A department should keep a list of empanelled hospitals and the approved rate list. Generate a JV to account for the expenditure and for recovery, if any,
By the next day 20
S.No
Activity to be made from the employee Generate a BPV for the payable amount Forward the JV along with BPV to the competent authority as per IWA for approval.
Person Responsible
Frequency
Remarks
Verify and authorise the BPV and JV in the system and sign the hard copy.
Same Day
10
Forward the BPV along with JV to the cash & bank section for release of payment. Receive the BPV and release Cash & Bank Same day payment as per procedure detailed in section manual on Cash & Bank. Deposit of TDS and filling of Annual Income Tax Return Prepare the challan for deposit of the Establishment Within the TDS with the authorities . Section stipulated time Generate BPV for deposit of TDS. Forward the BPV along with Challan to the competent authority as per IWA for approval. Verify and authorize the Challan and BPV. Sign the hard copy of the BPV & challan. Forward the BPV along with challan to Cash & Bank section for release of payment.
11
Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank.
Cash & Bank section
Same day
12
Receive the receipted copy of the Establishment challan from cash and bank section . Section and file it File Annual Income Tax Return within the stipulated time and as per prescribed format
Same day
21
S.No
Activity
Person Responsible
Frequency
Remarks
13
Payments against Post Retirement Medical scheme Verify the receipt of PRMS Establishment contribution for the year Finance Receive PRMS card issued by HR department and update the master with beneficiary details
Same day
Receive the claim forms from the exemployee duly approved by the competent authority. Ensure that the claim is within the entitlements (as prescribed) Process the claim for payment follow the procedure as outlined for processing of employee bills as provided above Generate an employee-wise statement of the payments released on account of medical expenditure (seperately for hospitalisation and non hospitalisation) during the period Verify the statement and forward the statement to the competent authority for review Documents - Records Document Title Claim for Medical reimbursement BPV Medical Statement reimbursement Document Type I O R MIR/PR/02 Format Ref Frequency Distribution As and when As and when Quarterly Establishment Finance Cash and Bank Section Establishment Finance Section
14
Quarterly
22
Accounting entries On payment of medical advances Medical advance Bank/Cash account On Reimbursement of Expenses Reimbursement of Medical Expenses Medical Advances Medical Expenses payable Medical expenses payable Bank /Cash Account On Payment to the Hospital Reimbursement of medical expenses (Hospitalisation) Dr Inter Unit Account Dr Amount Reco verable from employee Dr Medical expenditure payable Cr Medical Expenses payable Bank Dr. Cr. Dr Cr Cr Dr Cr Dr Cr
23
Process : PF Loan payment and Recovery
Process No : 08
This process deals with the procedure to be followed in respect of release of PF loan to the employees and recovery of the same. The payments and recoveries of the PF loan are to be dealt with by the Station/ Projects/CC respectively. The details of the payments/ recoveries should be intimated to the PF Trust (in the prescribed format). Prior to sanctioning the PF loan ensure the following with respect to the Rules prescribed: Eligibility and purpose for which loan is sought Availability of balance in the PF account of the employee concerned Repayment period and interest rate to be applied on the loan Interest (at the prescribed rate in case of temporary withdrawal) Submission of requisite documents Submission of documents in proof of compliance of the sanctioned purpose Departments / sections responsible Finance and Accounts Establishment Finance Section PF Trust
Procedure: PF Loan payment and recovery/ Withdrawal S. No 1 Activity PF Loan Receive an application for PF loan from the employee along with the supporting documents (as applicable) Check the application to ensure that the employee is eligible to take PF loan (as per the Rules prescribed in this respect) Forward the application for approval of the competent authority as per the IWA Generate the BPV to release the payment. after making the requisite entries in the control register/ PF module Forward the BPV to the competent authority as per IWA for approval. Verify and authorise the BPV in the Person Responsible Establishment Finance Section Frequency Remarks
As and when
Establishment Finance Sect ion
As and when
The payroll master to be automatically updated with the details of the PF Loan / Withdrawal released
Establishment
Same Day 24
S. No
Activity system and sign the hard copy. Forward the BPV to the cash & bank section for release of payment. Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank. Generate the schedule (in the prescribed form) for submission of information of PF loans/withdrawal released and forward the same to the PF Trust Receive proof of compliance for the purpose for which the loan was sanctioned.
Person Responsible Section
Frequency
Remarks
Cash & Bank section Establishment Finance Section
Same day
Monthly
Establishment Finance Section
As and when but within the stipulated time

Monthly
Generate a report of non-compliance for review and follow up Recovery of PF Loan
The PF loan recovery (in respect of temporary withdrawals) should be made through the payroll as per the terms of the loan. The system to calculate the amount recoverable based on the terms of the loan sanction (as updated in the payroll master). The recoveries on account of PF loan to be intimated to the PF Trust in the prescribed format Interest on PF loan Interest should be recovered on the PF loan (in case of temporary withdrawal) at the prescribed rates. The system to calculate the amount recoverable based on the terms of the loan sanction (as updated in the payroll master). Interest amount is to be recovered through the payroll. The recoveries on account of interest on PF Loan is to be intimated to the PF Trust in the prescribed format
Documents - Records
25
Document Title Application for PF Loan BPV/CPV ABDH Schedule
Document Type I O O
Format Ref MIR/PR/03
Frequency
Distribution
As and when Establishment Finance Section As and when Cash and Bank Section Monthly PF Trust
Accounting Entries On Release of PF Loan/Withdrawal PF Withdrawal PF loan A/c To Bank A/c Dr Dr Cr
(Recoveries of the loan amount and interest amount is to be made through the salary)
26
Process: Tour advances and submission of travel expense claims Process brief
Process No.: 09
This process lays down the procedure to be followed for payment of tour advances to the employee and the adjustment of the same on submission of the claim forms. While discharging this function it is to be ensured that: Request for tour advances is duly approved as per DOP A second advance is not paid unless specific approval is obtained The advance amount is determined based on the duration of the trip and the entitlements as per rule The travel tickets booked through the travel agent by the company is debited to the TA advance account (maintained employee-wise) initially and debited to travel expenses account at the time of passing the travel expenses claim The balance in the TA advance account is periodically analysed to ensure timely settlement of the same In case of any advance given/ tickets booked in respect of an employee from other units the same is transferred to the concerned unit through an inter unit advice Tour advances outstanding for a period of more than a month are recovered from the payroll unless settled by cheque. In case of cancellation of journey, the advance amount is refunded immediately by the employee The relevant supporting documents are submitted along with the travel expense claim The bills received from the travel agent are reconciled with the expense statement submitted by the employee The travel agents bills are accompanied by the movement order generated for making the bookings Departments/ Sections responsible Finance and Accounts Department Establishment Finance Section Concerned Departments
27
Procedure : Tour advances S.No 1 2 Activity Receive the request for tour advance from the employees Check that the Request is approved by the competent authority as per DOP Amount of the advance is reasonable (in terms of the duration of the tour and the entitlements of the employee) Person Responsible Establishment Finance Establishment Finance Frequency As and when Same day Remarks
Ensure that there are no advances outstanding against the employee Generate a CPV/BPV and forward to the competent authority as per IWA for approval. Verify and authorise the BPV/CPV in the system and sign the hard copy. Forward the BPV/CPV to the cash & bank section for release of payment. Receive the BPV/CPV and release payment as per procedure detailed in manual on Cash & Bank. Review the employees advances subledger Generate an age-analysis report of the advances (in respect of all account codes) outstanding and forward the same to the payroll section for making the necessary deductions from the payroll (where necessary)
Establishment Finance Establishment Finance
By the next day Same Day
Cash & Bank section Establishment Finance
Same day
Monthly
Procedure : Processing of Travel Expense claim S.No Activity Travel Agents bill Receive the bills from the approved travel agent making the bookings/cancellations through the Person Responsible Establishment finance Frequency Remarks
As when
and
28
S.No
Activity HR department. Check that the supporting documents such as movement orders/ credit note for cancellation charges are enclosed with the bill Enter the details (employee name, mode of travel, dates of travel, etc) in the travel expense module to update the subledger for Tour Advance liability account (employee-wise sub ledger to be maintained) Generate a JV to account for the expenditure. Generate a BPV for the net amount. Forward the BPV along with JV to the competent aut hority as per IWA for approval. In case of an employee belonging to other units, generate an inter- unit advice for debiting the advance to the concerned unit .For generation and authorisation of JV and IUA follow the procedure outlined in the manual on Book Section Verify and authorise the JV & BPV in the system and sign the hard copy. Forward the BPV to the cash & bank section for release of payment. For generation and authorization of JV follow procedure detailed in manual on Books Section Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank.
Person Responsible
Frequency
Remarks
Establishment Section
Same Day
Cash & Bank section
Same day
29
S.No
Activity
Person Responsible
Frequency
Remarks
4 5
Travel expense claim of the employees Receive the travel expense claim Establishment from the employees Finance Check that the Establishment Finance Claims (in respect of daily allowance, boarding, lodging, etc) are as per the entitlements The relevant supporting documents are attached (in respect of travel tickets, hotel bills, other sundry expenses, etc) Advances (if any) have been adjusted in the expense claim Generate the following : Establishment Finance JV to account for the travel claim and adjustment of tour advances and creating/ adjusting the liability for the tickets arranged by the Travel Agent BPV/ CPV for the net amount payable to the employee Forward the JV and the BPV/CPV to the competent authority as per IWA for approval. Verify and authorise the BPV/CPV and sign the hard copy. Follow the procedure detailed in the manual on Cash & Bank for verification and authorization of BPV/CPV Verify and authorize the JV in the system and sign the hard copy. Follow the procedure detailed in the manual on Books section for verification and authorization of JV Forward the BPV/CPV to the Cash & Bank section for release of payment. Establishment Finance
As and When As and when
As When
and
Same day
30
S.No 8
Activity Receive the BPV/CPV and release payment as per procedure detailed in manual on Cash & Bank.
Frequency Same day
Remarks
Review the tour Advance account Incase of old advances, take the necessary follow-up action (with the concerned employee/travel agent)
Month-end
Documents - Records Document Title Request for Tour advance Travel expense Statement BPV/CRV/BRV JV Inter unit advice Document Type I I O O O Format Ref Frequency As and when As and when As and when As and when As and when Distribution Establishment Finance Establishment Finance Cash and Bank Section Establishment Finance Establishment Finance Book section Establishment Finance Payroll Section
Age-analysis of advances outstanding
MIR/PR/01
Monthly
Accounting Entries On payment of tour advance Travelling advance Cash/Bank Account On Payment to travel agent Traveling Advance Travel agent payable account
Dr Cr
Dr Cr 31
Travel Agent payable account Bank account On settlement of travel expense claim Travelling expenses (including ticket booked by company) Traveling advance Travelling Expenses Payable Travelling Expenses Payable Bank/Cash For Refund of Advance Bank/Cash Travelling Advance
Dr Cr
Dr Cr Cr Dr Cr
Dr Cr
32
Process
: Personnel PaymentsOthers
Process No.: 10
Process brief This process lays down the procedure to be followed for reimbursement of the payments such as local conveyance, contingent claims and various entitlements (professional fee, internet connection, entertainment, etc) to the employees. In respect of each type of payment the Establishment Finance Section should ensure that the conditions and supporting documents as prescribed in the Rules and sanction order have been complied with. For instance: Conveyance Reimbursement as per the rates prescribed for the categories of employees and the type of vehicle Merit Scholarship - the courses applicable, period, amount, no of dependents in respect of which the scholarship can be claimed, etc Tution fees/ Hostel subsidy the amount, no of dependents in respect of which the scholarship can be claimed, documentary evidence, etc Membership fee - the number of professional bodies/ institutes in which reimbursement is allowed, the fee (membership/ admission) in respect of which reimbursement can be claimed, etc Departments/ Sections responsible Finance and Accounts Department Establishment Finance Section HR Department
Procedure: Reimbursement of entitlements S.No 1 Activity Receive the sanction order issued by HR Department Receive the claim for reimbursement either directly from the employee or through the HR Department/ station, as the case may be Check that the Claim is within the entitlement limit Relevant supporting documents in original are attached 33 Person Responsible Establishment Finance Frequency As when and Remarks
Same day
S.No 3
Activity Arithmetical accuracy of the claims Generate a BPV. Forward the BPV to the competent authority as per IWA for approval.
Person Responsible
Frequency
Remarks
By the next day
In case the payment is to be made with the salary follow the procedure for salary processing
Verify and authorise the BPV in the system and sign the hard copy. Forward the BPV to the cash & bank section for release of payment. Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank.
Same day
Cash & Bank section
Same day
Documents - Records Document Title Employee subledger BPV/CPV Statement of entitlements claimed Accounting Entries Professional fee Conveyance expenses Internet connection Other Entitlements Bank Account Dr Dr Dr Dr Cr Document Type R O R Format Ref PR/04 MIR/PR/04 Frequency Distribution Cash and Bank Section Establishment Finance Section
As and when As and when Quarterly -
In case of payment through salary, follow the procedure given in processing of payroll and disbursement.
34
Process: Transfer of employees Generation of Last Pay Certificate Process brief
Process No.: 11
This process lays down the procedure to be followed for the preparation of Last Pay Certificate (LPC) LPC is to be issued when an employee is transferred from one unit to the other. The LPC should contain all the relevant information such as last pay drawn, date of joining the company/unit, leave details, advances taken and amount recovered including the interest accrued, the balances outstanding in respect of other allowances (medical, LTA, etc), details of TDS, Family Planning Incentives, etc. Based on the likely date of relieving, eligible employees are to be paid Transfer Tour Advance and Pay Advance. The LPC should be generated based on the consolidated No dues certificate received from the HR Department and the data pertaining to the F&A Department from the system. The no dues certificate should be obtained by the HR Department from all the departments concerned (Township Administration, Auto base, Library, etc). An inter- unit advice should be generated simultaneously with the LPC to transfer the balances to the transferee unit. In case an employee is released during the month, it should be ensured that salary is drawn for the month at the transferee unit. However salary may be drawn at the transferor unit if the employee is released before 15th of the month It should be ensured that claims from reimbursement under various entitlements i.e. lunch subsidy, conveyance reimbursement, etc are obtained before issue of the LPC. In case of retention of lease (approved by the Compe tent Authority) the intimation for house rent recovery should be provided to the transferee unit. Departments / sections responsible Finance and Accounts Establishment Finance Section HR Department
Procedure: Generation of LPC S.No Activity Transferor Unit Receive the transfer & relieving orders and the details of the dues of Person Responsible Establishment Finance Frequency Remarks
As and when
35
S.No
Activity the employee departme nt from the HR
Person Responsible
Frequency
Remarks
Update the employee master, leave master and the advances master and generate the LPC and schedule C (5 copies). Review the LPC, ensure that all the details have been incorporated and approve the LPC (both in the system and the hard copy) Generate a JV and an inter unit advice on the unit to which the employee is transferred Follow the procedure outlined in the manual on Book Section for generation and sending of inter unit advices Forward a copy of the LPC to the HR Department (transferee unit) F&A Department (transferee unit) Employee Transferee Unit Receive the inter- unit advice, LPC and schedule C from the Transferor Unit Update the details of the LPC in the employee master, leave master PF master and the advances master and the date of the employee joining the Unit Account for the inter unit advice
HR Department/ Establishment Finance Establishment Finance
By the next day
Same day
By the next day
Establishment Finance Transferor Unit
Same day
HR/ Establishment Finance Department
Same day
Documents - Records Document Title No dues certificate Document Type I Format Ref PR/07 Frequency As and when Distribution HR Department Establishment Finance 36
Document Title LPC
Document Type R
Format Ref PR/08
Frequency As and when -
Distribution Establishment Finance transferee/ transferor unit HR Department transferee/ transferor unit Employee Establishment Finance transferee/ transferor unit
Schedule C
PR/09
As and when
Accounting Entries Transfer of balance of various advances Entry in the book of transferor unit Inter unit A/c (Transferee Unit) Advances A/c Entry in the book of transferor unit Advances A/C To Inter unit (transferor unit) Dr Cr Dr Cr
37
Process: Seperation Final settlement
Process No.: 12
Process brief This process outlines the procedure to be followed in making the full and final settlement on retirement/ resignation/ termination of services employees While discharging this function it is to be ensured that: The process of final settlement is initiated on receipt of office order and the likely date of relieving of the employee No dues certificate has been obtained from all the sections of Finance Department The consolidated no dues certificate has been obtained from the HR Department The amount payable as gratuity, balances available to the credit of the employee on account of leave encashment, provident fund and any other amount payable has been considered All claim forms in respect of allowances like conveyance/lunch/tea/newspaper/washing / child education reimbursement etc. have been obtained from the employee concerned TDS as required in respect of income tax has been worked out Payment for transfer TA in respect of superannuated employee is done on receipt of claims along with necessary supporting documents No dues has been received in respect of loans from other financial institutions for which recovery was being made from salary Adjustment has been made in respect of buy back of assets by the employee Recovery on account of HRR has been made in case permission has been granted for retention of the house/ lease accommodation. Payment for Final Settlement /Transfer of PF, Gratuity takes place only after settlement of all dues by the employee The HR Department should obtain the No dues certificate from all the departments concerned (Township Administration, Auto base, Library, etc) as well as from the landlord in case of third party lease. Based on the individual No dues certificates the HR Department should prepare the consolidated No dues certificate with reference to the employee concerned and forward a copy to F& A department. Departments / sections responsible
Finance and Accounts Department Establishment Finance Section HR Department departments
Procedure: Retirement/resignation/ termination of employees S.No Activity Person Responsible Frequency Remarks
38
S.No 1
Activity Receive the retirement/ relieving/ termination order from the HR department with the likely date of relieving. Ensure that the orders and certificates are duly approved by the competent authority Receive the no dues certificate from HR and compute the final amount payable to the employee based on the no dues certificates received and other relevant details (suc h as completed years of service, encashable leave balance, etc.)
Frequency As and when
Remarks
Update the employee master. Review and approve the final settlement statement. Ensure that deduction has been made for amount outstanding including Income tax, PF etc. Generate the final settlement statement Generate a JV and BPV for releasing the final settlement Forward the JV and BPV to the Competent authority as per IWA for approval.
Same day
As and when
PF and Gratuity shall be released based on prescribed application duly forwarded by HR department along with necessary certification
Verify and authorise the BPV and sign the hard copy. Follow the procedure detailed in the manual on Cash & Bank for verification and authorization of BPV. Verify and authorize the JV in the system and sign the hard copy. Follow the procedure detailed in the
Same day
39
S.No
Activity manual on Books section for verification and authorization of JV Forward the BPV to the Cash & Bank section for release of payment. Receive the BPV and release payment as per procedure detailed in manual on Cash & Bank.
Person Responsible
Frequency
Remarks
Cash & Bank section
Same day
Documents - Records Document Title Order of relieving of employee No dues certificate Final Settlement Statement Document Type I Format Ref Frequency As and when Distribution Establishment Finance Section HR Department Finance Department Establishment Finance HR Department Employee
I 1 O
PR/07A PR/07B PR/10
As and when As and when
40
Process: Processing of payroll and disbursement Process brief
Process No.: 13
This process outlines the procedure to be followed for the processing of the payroll and the disbursement of pay. Payroll should be processed on a monthly basis. The payroll masters should be updated prior to processing of payroll say by the 20th of the respective month. The orders/ details/ information relating to the payroll master obtained subsequent to the 20th would be updated in the payroll of the next month. Payroll payments /recoveries should be effected through payroll. Other employee payments should be made either through CPV or BPV as the case maybe
While discharging this function it is to be ensured that: Deductions, if any, on account of non submission of claims/ non adjustment of advances in stipulated time have been made The gross pay as per the current month has been compared with that of the previous month and the variance has been analysed to carry out an overall check on the pay bill All negative pay cases have been reviewed and a letter for settlement of negative pay within the stipulated time frame have been issued to the employee concerned The PF and Pension Trusts have been intimated of the recovery made from the salary within three days of release of salary Claim for Gratuity payment released has been raised immediately after release of gratuity The month wise recovery and interest accrued on PF balance is submitted annually to the PF trust Other recoveries such as insurance, third party liabilities are remitted immediately after processing of pay bill
Departments / sections responsible Finance and Accounts Establishment Finance Section HR Department
Procedure: Payroll processing and disbursement of pay S. No 1 Activity Receive the following: Attendance records along with the details of leave availed from the 41 Person Responsible Establishment Finance Frequency Monthly Remarks
S. No
Activity HR Department Data for the generation and construction incentive from the Industrial Engineering Department DA for the quarter from the HR department Confirmation from the section concerned regarding recovery of outstanding advances (e.g. staff advance, tour advance etc) for adjustment in the payroll Approved validation report of supplementary and other manual payments/ recoveries from the respective sections Receipt of house allotment/vacation statement from the HR Department.
Person Responsible
Frequency
Remarks
Carry out the rectifications/ adjustments as identified to be carried out in the Gross Pay Variance Statement of the previous month Generate a validation report of all the amendments effected to the master Check the validation report with the supporting documents. Authorise the updation in the system and sign the validation report. File the validation report in the payroll file for the month. 3 Establishment Finance Generate the following (in respect of the payroll) from the system: JV BPV Bank schedule for transfer of pay to the employees account 42 Monthly
Immediately
S. No 4
Activity Forward pay slips to the head of the respective departments for distribution to the employees Gross Pay variance (GPV) statement
Frequency By the next day
Remarks
Generate a gross pay variance (GPV) statement giving the element wise variance between the gross pay as per the current month and previous month. Generate an employee wise statement for exceptional variances (amount/ item wise). Analyse the reasons for the variances and crosscheck the same with the validation reports for the month to ensure overall accuracy of the pay bill. In case of any errors, record the same on the GPV statement along with the necessary employee-wise details that need to be rectified/ adjusted in the next months payroll. Forward the statement to competent authority for review the
After the payroll processing
Review the GPV statement as well as the rectifications/ adjustments to be made in the payroll of the following month Retain the GPV copy of the statement in the monthly payroll file. Note: In case of CISF personnel deputed, the payroll is to be processed by the Unit and recoveries on account thereof is to be forwarded to the parent organisation
Documents - Records
43
Document Title Statement of Generation Incentive for the month Circular for DA Validation report of outstanding advances for deductions from payroll Payroll summary Salary slips Bank Schedule
Document Type I I I
Format Ref -
Frequency Monthly Quarterly Monthly -
Distribution Establishment Finance Establishment Finance Establishment Finance Establishment Finance Employees Cash and Bank Section Bank Cash and Bank Section Book Section
O O O
PR/11 PR/12 -
Monthly Monthly Monthly
BPV JV
O O
As and when
Gross Pay Variance statement Accounting Entries Liability for salary payable
By the next day of generation of payroll MIR/PR/05 Monthly -
Wages and allowances Salaries and Allowances Incentive - Generation Overtime Incentive - Project Contribution to PF and Othe r Funds payable I.Tax Deduction Contribution to other Funds Payable Insurance Premia payable Rent paid for Co Leased Accommodation Recoveries of advances Salaries Payable
Dr Dr Dr Dr Dr Cr Cr Cr Cr Cr Cr Cr
44
Accounting for PF liability PF Employer Contribution PF Employee Contribution Other PF Recovery Advance to PF Trust Pension Fund Payment of Salary Salaries payable Bank Account Dr Cr Dr Dr Dr Cr Cr
Inter Unit Advice for recovery /payment made based on advice/LPC Salary A/c Inter Unit A/c (concerned station) Dr/Cr Cr/Dr
45
Process: Payment under NTPC Employees Family Economic Rehabilitation Scheme
Process.:14
Process brief : This process lays down the procedure to be followed for processing of payment under NTPC Employees Family Economic Rehabilitation scheme. HR department should issue order indicating the name of the beneficiary, notional date of retirement, monthly amount payable amount deposited under the scheme, effective date of payment etc. It is to be ensured by the concerned department that: Control Register is updated with the requisite detail like name of the employee, employee number, name of the beneficiary, address for communication, notional date of retirement, monthly payable amount, name of the nominee etc., Receipt is issued to the beneficiary for the amount received under the scheme That PF interest is not released for the month for which payment under NEFRS is being released to the beneficiary In case of change in Place of Payment of monthly amount the entire amount as per sanction order is to be transferred to the changed place of payment by the unit concerned
Departments / sections responsible Finance and Accounts Establishment Finance Section HR Department Procedure: S.No 1 Person Responsible Received order from the HR HR department based on committee department recommendation Entering the detail in the NEFRS master Check the validation report with the supporting documents. Authorise the updation in the system and sign the validation report. File the validation report in the NEFRS file for the month Establishment Finance Establishment Finance Activity Frequency As and when Remarks
Same day
Same day
46
S.No 4
Activity Ensure that the masters have been updated for the month. Process the NEFRS master and generate the NEFRS bank schedule. Process for release of payment
Frequency Before processing NEFRS payment On the last working day of the month On the Ist working day of the month
Remarks
Establishment Finance Establishment Finance
Generate BPV for amount payable.
the
monthly
Verify and authorise the BPV as per IWA For generation and authorisation of BPV follow procedure as per manual on Cash & Bank section Forward the BPV to Cash & Bank section for releasing payment Release payment as per procedure detailed in manual on Cash & Bank section
Cash & Bank section
Same day
Accounting entries
Bank A/c / Inter unit A/c Economic Rehabilitation Deposit A/c Monthly payment under Economic Rehabilitation scheme A/c Bank A/c
Dr Cr Dr Cr
47
Process: Processing of payroll and disbursement - Executive Trainees (ET) Process brief
Process No.: 15
The Power Management Institute (PMI) should centrally maintain the records for ETs and should update the location of the ETs as and when change in location takes place. The PMI should submit the payroll-related data of ETs to the HR Department, EOC by the 20th of the month to update the employee and leave records. Based on the records obtained from PMI, the Establishment Finance Section, EOC shall process the payroll. The salary should be debited to the project/ station concerned and the respective unit shall release the net salary. The salary intimation along with the payslip should be sent to the PMI for onward forwarding to the respective place of posting of ETs. Any other entitlement of the ETs should be released from the units at which they are placed. However, the balances on account of loans and advances should be transferred to EOC so as to effect the recoveries from the payroll. Departments / sections responsible Finance and Accounts Establishment Finance Section, EOC PMI Procedure The process for generating the payroll and the other related activities (deduction of tax, Gross Pay Variance statement, etc) would be the same as per the procedure for payroll processing detailed in Process No 03 Accounting Entries Training Expenses Contribution to PF and other funds payable I.Tax Deduction Insurance Premia Recoveries for advances Training expenses payable Training expenses payable Inter Unit A/c (Concerned station/ project)
Dr Cr Cr Cr Cr Cr Dr Cr
JV in transferee unit Inter unit A/c To Bank A/c

Dr Cr 48
Process: Determination of Tax Deducted at Source (TDS) Process brief
Process No.: 16
This process provides the procedure to be followed for determining the tax deductible from the employees salary. The primary responsibility of deducting the tax on income of the employees lies with the employer. The income -tax to be deducted from the salaries should be determined in advance after taking into account the savings (eligible for deduction/tax rebate) proposed/ made by the employee and income form other sources as declared by the employee. Estimated perquisites should also be included in the estimation of gross salary income In respect of employees on deputation from government, salary for the period March -February only is to be considered for income tax purpose. The data and the tax structure, as applicable for the year, should be fed in the system at the beginning of the year. The declarations received from the employees should also be fed in the system to calculate the tax payable. Necessary adjustments should be made in the master to calculate the tax payable based on the actual savings effected by the employees. The tax payable as determined (for the year) should be deducted in equal monthly installments from the salary of the employees. The Establishment Finance Section should ensure that the tax has been deducted as per the provisions of the Income Tax Act, 1961 and the tax deducted has been deposited with the authorities within the stipulated time frame Departments / sections responsible Finance and Accounts Establishment Finance Section
Procedure: Determination of TDS S.No 1 Person Responsible Enter the tax structure for the year in EDP/ system the system to update the tax master as group in per relevant Finance Act consultation with Establishment Fin. Activity Frequency As and when changes take place Remarks
49
S.No 2
Activity Issue a circular to all the employees for submission of tax savings declaration forms Obtain the tax savings forms from the employees alongwith Form 12-C, wherever applicable. Enter, the details of the tax savings submitted, in the system Generate a validation report of all the additions made to the master. Review the validation report with the supporting documents Update the entry in the system Process the system for calculation of the TDS to be deducted
Person Responsible Establishment Finance Establishment Finance
Frequency 1st week of September By 1st week of Feb* /March As and when required
Remarks
I/c Establishment Finance Establishment Finance
Same day
End of the month along with payroll processing By April end / as per applicable law
Generation of Form 16 Generate the following : Form 16 alongwith the necessary annexures like 12BA etc. for each employee A list of TDS certificates An overall reconciliation statement giving the aggregate value of the TDS certificates generated, total TDS deducted from employees and the amount deposited with the authorities
Before remitting final instalment of tax for the financial year
Forward form 16 after signature of the competent authority to the departments for handing over to the respective employees.
In case of retired employees/ employees who have resigned, the forms should be sent by registered post. 50
S.No
Activity
Person Responsible
Frequency
Remarks
Generation of Annual Return Process the Annual Return for Establishment salaries in the prescribed Form (Form Finance 24) File the duly completed and approved forms with the Income-tax authorities
Within the stipulated period
Documents - Records Document Title Declaration forms of Savings/ External income Calculation slip Form 16 Form 12BA Form 24 along with necessary annexure Document Type I O O O O Format Ref. PR/13 Frequency Annually Monthly Annually Annually Annually Distribution EstablishmentFinance Employee Employee Income Tax Authority Income Tax Authority
51
Process: Deposit of statutory dues and other payments Process brief
Process No.: 17
This process lays down the procedure for depositing statutory dues with the authorities and other payments. The statutory dues that have to be deposited with the specified authorities include: Income tax deducted at source Provident Fund - PF (both employee and employers contribution) Pension contribution
In addition to the above there are a few voluntary funds (Benevolent Fund, Society Loan, NTPC Pension, etc.) in respect of which deductions are to be made from the employees and deposited with the authorities. In case of employees on deputation to NTPC from other organizations the recoveries on account of PF, pension, etc should be sent to the parent organization. In case of employees of NTPC on deputation to other organization the recovery should be monitored at the site from where the employee was sent to the other organization on deputation. . In respect of PF, the Establishment Section, CC should deposit the amount with the PF Trust, for the company as a whole based on the claim raised by the PF Trust. The PF Trust shall raise the claim based on the previous months PF recovery details. An inter-unit debit advice should be raised on the individual units for the payments made on their behalf to the Trust. Foreign service contribution payable to the parent organization for the service rendered by employee on deputation to NTPC should be provided for n the books of account after taking into account the leave availed by the employee during the relevant period at the time of closing of accounts. The TDS amount deducted should be deposited in the bank along with the necessary challans. Departments / sections responsible Finance and Accounts Establishment Finance Section PF Trust
52
Procedure: Deposit of statutory and other dues S. No 1 Activity Deposit of TDS Prepare the challan required for remitting the amount to the authorities based on the payroll summary and manual adjustments, if any Forward the same to the competent authority for approval with the relevant supporting documents i.e. payroll summary BPV manual adjustments, if any Verify and authorize the BPV and sign the challan and forward to Cash & Bank section for releasing payment. Receive the BPV and arrange cheque as per BPV and send back to Establishment Finance for depositing in the bank Deposit the challan with the authorities along with the cheque for the same The cheque deposited should bear a stamp Payment on behalf of NTPC on the reverse of the cheque. Obtain the receipted copy of the challan from the banker concerned. Enter the details of the challan in the system to update the employees tax master. File the receipted challan in the concerned file. Deposit of PF
Frequency
Remarks
Within 2 days of preparation of payroll
Same day
Cash & Bank section
Same day
Within 7 days of preparation of payroll
53
S. No 5
Activity Receive the summary of the payroll and the statutory/ other deductions/ contributions, PF Advance Payment to employee, Final Settlement of PF & Funeral Expenses paid from the PF control account (in the specified format i.e. ABDH) from all the units Based on the summaries received and the credit balance in the trust account and advance to PF trust account in NTPC books, ascertain the net amount receivable and lodge a claim for disbursement to the company
Person Responsible PF Trust
Frequency By the 7th of the following month
Remarks
Receive a (provisional) claim from Establishment the PF Trust for deposit of the dues Finance for the month Section (C.C.) Generate a BPV and release the payment to the PF Trust as per the procedure outlined in the manual on Cash and bank Generate inter unit advices on all Units in respect of the PF amount deposited with the Trust on their behalf as per the procedure outlined in the manual on Books Section Employees on Deputation to NTPC In case of employees on deputation to NTPC the PF amount should be deposited with the parent company/ concerned trust- the amount to be ascertained based on the payroll processed. Generate a BPV and deposit the amount with the respective authorities as per the Cash and Bank system
By the 10 th of the following month
Establishment Finance Section
Within 12 days of the following month
Note: The same procedure as outlined above for deposit of PF dues is to be followed in respect of the dues towards other Benevolent Funds, Insurance Premium, club dues etc.
54
Documents - Records Document Title Challan BPV Document Type I/O O Format Ref Frequency As and when As and when Distribution Bank Cash and Section PF Trust CC Book Section
Bank
ABDH Schedules Inter unit advice/JV Accounting Entries Deposit of Income Tax I.Tax Deduction Bank Account Accounting of PF
I O
MIR/PR/ 03 -
Monthly As and when -
Dr Cr
Contribution to PF including Co. contribution, VPF, PF Loan Recovery PF Payable a/c For adjusting advance payment made to employee with PF Liability PF Payable a/c PF-Advance released to employee On Receipt of advance payment to PF Trust advice from CC Advance to PF Trust CC Inter Unit A/C For Adjusting PF Liability with Advance to PF Trust PF Payable A/C To Advance to PF Trust Deposit of other dues/ insurance premia Contribution of HBA Insurance Premia payable LIC Premium deducted Payable Cooperative Society Dues Recoveries Voluntary Benevolent Fund Recoveries Other Deductions from Staff Payable Bank Account
Dr Cr
Dr Cr
Dr Cr
Dr. Cr.
Dr Dr Dr Dr Dr Cr 55
PR/01
EMPLOYEE MASTER
Employee Details Name Designation Department Code Date of joining NTPC Date of joining the location Date of Birth PAN No. Date of Retirement Date of leaving Details of Bank Name Account No. No. Grade Particulars of pay structure Earnings (provide details of items) Deductions (provide details of items)
Dependents Details Code Number Name
Relation
Age
56
PR/05 Employee Loan/ Advances Ledger

As on ---------------------Advance Type : Account Head: Account Code: Employee Name No Ref No. Amount (Rs.) Repayment Terms Department Designation Advance sanctioned detail
Advance Sanctioned
Ref Amount (Rs) Interest Rate (%) Repayment Terms
Disbursements
BPV No Date Amount (Rs)
Deductions from payroll Month Amount (Rs)
Interest accrued
Opening Balance Accrued during the period Closing Balance
Balance outstanding Principal Interest

Total
60
Any other reasons (provide details)
Total (D) [should be equal to B above]

Reconciliation with the charge to the P&L Account
Particulars
Total lease rentals paid (As per B above) [1] Amount as per the entitlement of the employees [2] Net rent charged to the Expense account [3] Difference [4] [1-(2+3)]
Amount (Rs)
Analysis of Difference
Amount recovered from the employee Amount debited to other units Any other reasons
Total (should be equal to 4 above) Prepared By ------------------------------------------------
Approved By -----------------
PR/04 Sub- Ledger For the period ----------
Account Code ---------------Voucher No Date Opening balance Particulars Dr Amount (Rs) Cr.
Closing Balance
58
PR/06 OVERTIME STATEMENT For the month ended --------------------Employee

Name Deptt Des/ Grade Overtime claimed till previous month Hours Amount (Rs)
Claim for the current month

Hours Rate (Rs) Amount (Rs)
Cumulative OT
Hours Amount (Rs)
No
OT allowed as per Rules (Hrs)
Remarks
TOTAL Prepared By ----------------------------------------------------Approved By ---------
60
MIR/PR/07 NO DUES CERTIFICATE

As on ----------------Location --------------------Employee name Designation Department Date of Joining Reason for relieving the employee Ref. No Amount Due From the Employee (Rs) - Petrol - Electricity - LIC - HBA Insurance - Lease Rental/ Advance Advances outstanding - LTC - Tour Advance - Medical - Staff advance Establishment PSL Works - Imprest - Others Loan Balances Type of Loan Interest rate Employee No Grade Dept code Date of Release
Amounts Due to the Employee (Rs) Generation Incentive Oil Incentive
Ease Maintenance Paid upto

Conveyance Maintenance paid upto Any other dues
Amount Released Principal
Amount Outstanding
Interest
Interest upto previous year Interest for the current year
Prepared By ---------------------------
Approved By
Note: The consolidated No Dues certificate (other than the outstanding balance of loans and advances) to be provided by the HR Department (as per HR format) The data of loans and advances to be furnished by the F&A Department In respect of HBA Advance, interest for the current financial year to be mentioned separately
61
MIR/PR/08 LAST PAY CERTIFICATE

Employee Particulars
Name Number Designation Grade Department code
Other Particulars
Date of joining NTPC Date of joining at present place of posting Date of birth Relieving date Relieving Authority Salary paid upto Increment month Old increment month Stagnation Increment Amount 1 st 2nd
3rd
Pay Structure Earnings

Basic Pay DA Other Allowances Reimbursements Overtime Incentives Total (A)
Deductions
Advances Lease rental PF Income Tax
Total (B)
Amount Due from the Employee

(as per the Dues Certificate)
Amount Due to the Employee

(as per the Dues Certificate)
YTD Details
Basic Pay DA CCA Overtime (indicate Hours also) Others Income tax & surcharge Contribution to PF VPF Benevolent Fund Professional Tax Perquisites Headwise
Details since last pay revision

Basic Pay Special Pay Others
Payments released upto the date of relieving

Entertainment Medical Taxable/ Non Taxable Internet Lease Maintenance Conveyance Maintenance Newspaper/ Attendant/ Electricity charges Furniture for residential office Lease Rent paid upto Lease Accommodation retained upto Tax on lease rent deducted
Lease Details
62
Leave Details (Since last pay revision) Type Leave entitlement

(No of days)
Leave encashed/availed
(No of days)
Balance leave Encashable

(No of days)
Loans
Type
Advance amount
Sanctioned date of sanction (Rs) Advances
Advanc e and amount

Availed (Rs)
Period of loan
Installment amount (Rs)
Rate of interest
Accrued Interest (Rs)
Amount Recovered (Rs)
Amount outstanding (Rs)
Type
Total
Advance amount
(Rs)
Amount Recovered
(Rs)
Balance Outstanding (Rs)
Recovery terms
Prepared By ------------------------------Note:
Approved by ----------------------------------------
The OT hours to be indicated to ensure that the overall limit of OT hours is not exceeded In case of HBA interest accrued for the current year to be mentioned separately Enclose a copy of NTPC pension recovery details slip
63
PR/09 SCHEDULE C DATED :

The Dy.Mgr. / Mgr.(Fin.) (Project /Station Name and Code ) : INTER UNIT TRANSFER OF PF FROM : TO :
We are transferring the PF balance(s) standing to the credit of employees(s), transferred and posted at your project/unit as per details given below
Employees Name
Emp. No
Member s Cont
Bonus
Total Members Contributio n 5 = (3+4)
Intt.
Companys Contr
Intt
Total
Intt pa upto
9 =(5+6+7+8)
NOTE : 1. Bonus has been merged with the Members Contribution (Column 5). It has been shown
2. separately for inclusion in members total income for Income Tax purpose only. Addendum to Schedule C for NRA for HBA paid.
(ACCOUNTANT) EXECUTIVE (PF)
64
ANNEXURE I ADDENDUM TO SCHEDULE C 1. 2. 3. 4. 5. 6. 7. 8. ISSUING UNIT RECEIVING UNIT ADDENDUM TO SCH. C NO. S.NO. OF SCH. C NAME OF MEMBER EMPLOYEE NO. DATE OF 1ST APPLICATION DETAIL OF DWELLING UNIT FOR WHICH NRA FOR HOUSE / PLOT / FLAT SANCTIONED MEMBERS CONTRIBUTION
9. LIMIT FIXED AS PER CLAUSE 48 OF THE RULES. 10. NRA FOR THE PURPOSE PAID 11. BALANCE LIMIT
COMPANYS CONTRIBUTION
EXECUTIVE
65
PR/10 FINAL SETTLEMENT STATEMENT

Employee Name Employee Code Date
PAYMENT
Particulars Leave Encashment Earned Leave : Basic DA Spl Pay FP Incentive Amount (Rs.)
RECOVERY
Particulars Advances Recoverable TA Advance Motor Car advance Multi purpose Advance House Building Advance Furniture Recoveries on account of Income Tax PF Amount (Rs.)
Half pay Leave: (half of each element)

Basic Spl Pay Add Full DA Incentives Generation Construction Provident Fund payable on salary recovery Others Total Total amount Payable/ Recoverable
Others
Total
Amount paid / received vide cash/ cheque No -------------------------- dated ---------------------------Prepared By -------------Authorised By -------------------Enclosed Income Tax calculation Detail
66
PR/11
PAYROLL SUMMARY
Employee Name No Desg/ Grade Deptt
Payments
Basic DA HRA Incenti ves Overtime Others Total
Recoveries
PF & income tax Insurance Premia Recoveries for Advances Cont to other funds Total`
Net Salary Payable
67
PR/12
Location Employee No Grade NTPC Joining Date Bank Account No SALARY SLIP FOR THE MONTH OF ------------------Slip No Name Deptt Location joining Date Bank Code
EARNINGS
Basic Pay VDA CCA/ FCA/ SCA HRA Incentives Generation Oil Construction Others Night Shift Over time Payment Merit Award
DEDUCTIONS
PF/ GPF VPF Employee Pension Additional Contribution Income tax
LIC HBA Insurance Benevolent Fund
Subsidies Transportation Lunch Others Reimbursements Education Washing Literary Tea Others
Recoveries Loans Electricity Petrol Adjustment of Advances Multi purpose Tour Advance Others
68
Gross Income NET PAY

Gross Income Incentives VPF I Tax Benevolent Fund PF Pension Overtime payments
Gross Deductions
YTD DETAILS UPTO ---------- (Current month)
LEAVE DETAILS
Type Month Year Days
OUTSTANDING LOAN DETAILS as on date

Type Principal Interest Total
69
PR/13 CALCULATION SLIP Employee Particulars

Name Designation Department code PAN No Details of Earnings Particulars Income from Salaries Details as applicable for the employee Less : Standard Deduction Net income from Salaries (A) External Income (B) Provide head wise details No Grade
Amount XXXX
XXXX
Amount
XXXX XXXX
XXXX
Gross Total Income ( C) [A+B] Deductions under Chapter VI A (as prescribed) (D) Details as per the declaration provided by the employee Taxable Income (E) [C-D]
XXXX XXXX
XXXX XXXX
XXXX XXXX
70
Tax Rate (F) As per the provisions of the Income Tax Act, as applicable Tax on Total Income (G) [E*F] Rebate (H) As per the investment details provided by the employee
XXXX
XXXX XXXX XXXX
Tax Payable (I) [G-H] Surcharge (J) At the prescribed rates Total tax payable (K) [ I+J] Monthly tax to be deducted (L) [K/12} Tax Deducted for the year (till date) (M) Balance Tax to be deducted [K-M]
XXXX XXXX XXXX XXXX XXXX XXXX XXXX
71
MIR/PR/01 Statement of outstanding advances As on ---------------Account Head ---------------Account Code -----------------Department Employee Name No
Deptt Code
Advance
Date of advance Balance (Rs) Period of Outstanding
Remarks
Prepared By --------------------------------------------------------
Approved By ------
Note: The statement to be generated by the Est. Finance Section and to be forwarded to the Payroll Generating Section The recommended action should be indicated in the Remarks column along with the reasons for the same
72
MIR/PR/02 MEDICAL REIMBURSEMENT STATEMENT For the Quarter ended ----------Employee Name No. Desg Grade Deptt code
Claim details
Claimed passed tll previous Qtr (Rs) Claims during the quarter (Rs) Type of claim (H/NH) (S/ D) Paassed Amount (Rs) Cumm Amount of claimed (Rs) Passed (Rs) BPV No.
Disbursement Date Amount (Rs)
Remarks
Prepared By -----------------------------
Approved By ---------------------------
Note: Type of claim should indicate whether the claim is for Hospitalisation (H) or Non-Hospitalisation (NH) and whether the claim is for Self (S) or for Dependent (D)
73
MIR/PR/03
A,B,D, H SCHEDULE FOR THE MONTH OF --------------------------Sl. No
Particulars
SCHEDULE A
P.F. wages ( Basic Pay + D.A ) FPF Wages Members Contribution Employer Contribution V.P.F Refund of Advance (excluding interest recovered) Interest on refundable advance recovered from members Penal interest recovered on refund of Non-refundable advance Total (2 to 7) SCHEDULE B Final Settlement/ Transfer Out of Member Members Contribution Companys Contribution Total (8+9) SCHEDULE D Refundable Advance Non- Refundable Advance - Members Contribution - Companys contribution Total (10+11) SCHEDULE H Funeral expenses paid on behalf of PF Trust Unclaimed amount Total (B+D+H) Net ABDH (A-(B+D+H))
Amount For the Month
Cumulative Amount (upto the current month)
1 2 3 4 5 6 7 8
9 10
11 12
12 13
74
Prepared By -------------------------------------
Approved By -------------------------------
75
MIR/PR/04 STATEMENT OF ENTITLEMENT CLAIMED For the Quarter Ended -----------------Entitlement Type --------------------Account Code --------------Employee Name No. Desg Grade Deptt. code Entitle ment as per rules Entitlement Claim Till Previous Quarter (Rs) Claim for the Quarter (Rs) Cumulative till the quarter-end (Rs) Balance Amount payable (Rs) Disbursement details for the quarter BPV No Date Amount (Rs) Remarks
Prepared By -------------------------------Note: The statement to be prepared in respect of all types of entitlements
Approved By -----------------------------
76
MIR/PR/05 GROSS PAY VARIANCE ANALYSIS

For the month of -------------Particulars Amount (Rs.) Amount (Rs.)
Gross Salary for the month of ---- (previous month) - Basic Pay - VDA - CCA/FCA/SCA - HRA - Incentives - Night shift - Over time - Merit award - Subsidies - Reimbursements TOTAL Gross Salary for the month of ---- (current month) - Basic Pay - VDA - CCA/FCA/SCA - HRA - Incentives - Night shift - Over time - Merit award - Subsidies - Reimburs ements TOTAL
77

Difference - Basic Pay - VDA - CCA/FCA/SCA - HRA - Incentives - Night shift - Over time - Merit award - Subsidies - Reimbursements TOTAL Analysis of difference Appointment / transfer in of employees Retirement/ transfer out of employees Promotions/ increments Arrear payments Others (provide details) TOTAL No of Employees
78

No of employees at the beginning of the month Add: Appointments Transfer In Less: Retired/ Resigned/ Terminated Transfer Out Total Prepared By ------------------Approved By ------------------------Note: The analysis to be prepared by the Payroll Section This report would provide an overall check of the payroll generated
79

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NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON PERSONNEL ACCOUNTING

A.F.FERGUSON & CO. NEW DELHI

Manual on Personnel Accounting

Manual on Personnel Accounting

Process : Maintenance of Employee Records Process brief

Manual on Personnel Accounting

Remarks same to Finance Establishment

Prior to processing of the payroll for the month.

As and when Monthly

Manual on Personnel Accounting

Process: Payment of employee leased accommodation Process brief

Manual on Personnel Accounting

Establishment Section Establishment Section

Monthly before processing lease payment. Month-end

Manual on Personnel Accounting

Generate the following:

Within the stipulated time

Cash & Bank section

Manual on Personnel Accounting

Manual on Personnel Accounting

Process: Loans and Advances to employees Process brief

Manual on Personnel Accounting

Person Responsible Establishment Finance

Frequency As and when

Person Responsible Cash & Bank section

Frequency Same day

Manual on Personnel Accounting

Accounting entries On payment of loans/ advance Loans Advances Bank Account Dr Dr Cr

Manual on Personnel Accounting

: Other Pers onnel PaymentsOvertime payments

Manual on Personnel Accounting

Manual on Personnel Accounting

Process: Other Personnel Payments Leave Encashment Process brief

Same day Establishment Finance

Manual on Personnel Accounting

Person Responsible Cash & Bank section

Manual on Personnel Accounting

: Other Personnel PaymentsLeave Travel Concession

Manual on Personnel Accounting

Person Respons ible

As and when Same day

Cash & Bank section Establishment Finance

Manual on Personnel Accounting

Activity making the necessary deductions from the payroll

Person Respons ible

Manual on Personnel Accounting

: Other Personnel PaymentsMedical Reimbursement

Person Responsible Establishment Finance Establishment Finance

S.No medical claim

Cash & Bank section

By the next day 20

Manual on Personnel Accounting

Cash & Bank section

Manual on Personnel Accounting

Manual on Personnel Accounting

Manual on Personnel Accounting

Process : PF Loan payment and Recovery

Establishment Finance Sect ion

Manual on Personnel Accounting

Person Responsible Section

Cash & Bank section Establishment Finance Section