Eureka!!! CBEC (and CBDT) had Financial Powers - Was it a closely guarded secret?
ONE of the bitter grouses of the IRS officers is that their Boards, CBEC and CBDT do not have any financial powers. It is often derisively stated that the mighty Chairman of the Board is not empowered to buy a set of cups and saucers or that a Member of the Board cannot buy a sheet of white paper.
The services had demanded, before the Pay Commission, functional and financial autonomy on par with that available in Railway Board for the Revenue Boards - CBEC and CBDT.
The VI Pay Commission was not of course impressed and observed,
Work entrusted to CBEC/CBDT is revenue collection, which is one of the sovereign functions. The Boards cannot, therefore, be equated to the Railway Board which primarily discharges functions of a commercial nature. As such, complete functional and financial autonomy to CBEC/CBDT is not justified.
Even the recent Tax Administration Reform Commission (TARC) recommended financial autonomy for the Boards.
Even in the presentation before the Finance Minister last month by CBEC, this issue had come up.
But it seems THEY HAD THIS POWER SINCE 2008 - and surprisingly, nobody, not even the Board knew about this! Was it a closely guarded secret?
Anyway, it goes to the credit of the Chairperson of CBEC Shanti Sundharam who has now brought this hidden power to light.
In a note to Members of the CBEC, she states,
It is ascertained that delegation of powers has already been given to the CBDT and , CBEC vide OM F.No.15/6/2008-IFU-III dated 6.6.2008. It is also understood that while CBDT has put in place a system for obtaining expenditure sanction under these delegated powers, CBEC is yet to follow. Further, it appears that the field formations are also not aware of this delegation. Wide publicity needs to be given to this OM and appropriate structure needs to be put in place within the Board for proper exercise of powers delegated under this OM. Necessary action may be taken for the same.
In the OM F.No.15/6/2008-IFU-III dated 6.6.2008, referred to by her, it is informed that:
With the approval of the competent authority following procedure is prescribed for sanction of expenditure in CBDT and CBEC.
a) Proposals requiring sanction of expenditure beyond HoD powers and up to Rs. 2 Crores will be routed through JS(Admn)/Member to Financial Adviser for consideration and approval.
b) Proposal requiring sanction of expenditure beyond Rs. 2 Crores and upto Rs. 5 Crore will be routed through the JS(Admn)/Member concerned, Financial Adviser to the Chairperson of the Board for approval.
c) Proposal requiring sanction of expenditure beyond Rs. 5 Crore and upto Rs. 10 Crore will be routed through the JS(Admn)/Member concerned, Chairman and Financial Adviser for obtaining the approval of the Revenue Secretary.
The above changes in the level of consideration and disposal of expenditure proposals may be intimated to all the concerned in CBDT, CBEC and other organizations.
This OM had been communicated to the Chairmen of CBEC and CBDT. Obviously it got lost in glaciers of papers floating around in the ocean of North Block. And this did not come to light for six long years. Had it been known and implemented in 2008, the Boards could have by now asked for an enhancement of the limits and the Chairman could have got power to sanction expenditure up to Rs. 20 Crore.
Better late than never - The Board Chairman can now buy those cups and saucers without being at the mercy of the benign JS(Admn). I eagerly look forward to have tea in one of those cups (bought with the full authority and power of the Chairman of the Board). I hope I get invited!