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NATIONAL THERMAL POWER CORPORATI ON LIM ITED

MANUAL ON

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CONTENTS

Process

No

Process Page No

Introduction

1 Maintenance of Employee Records 2

2 Payment of employee leased accommodation 4

3 Loans and Advances to Employees 8

4 Other Personnel Payments Overtime Payments 125 Other Personnel Payments - Leave Encashment 14

6 Other Personnel Payments - Leave Travel Concession 16

7 Other Personnel Payments Medical Reimbursement 198 PF loan payment and recoveries 24

9 Tour advances and submission of travel expenses claim 27

10 Personnel Payments Others 33

11 Transfer of employees generation of LPC 3512 Seperation - Final settlement 38

13 Processing of Payroll and disbursement of pay 41

14 Payment under NTPC Employees Family Economic

Rehabilitation Scheme

46

15 Processing of Payroll and disbursement of pay Executive

Trainees (ETs)

48

16 Determination of TDS 49

17 Deposit of statutory dues and other payments 52

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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 andmaintenance 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 theorganisation, determination, recovery and deposit of TDS on salary and other payments which

are subject to levy of tax.

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Process : Maintenance of Employee Records Process No.: 01

Process brief

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 theemployee due to any other reason.

The employee database should be maintained by the HR Department and the fields pertaining topayments 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 inProcess 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 employee joining

NTPC was member of PF in previous organisation

A f th lid ti t f th t ti / d ti i i t i d dit t il

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S.No Activity Person

Responsible

Frequency Remarks

same to Finance

Establishment

2 Verify the changes made in thepayroll master with reference to the

order.

Update the master in the system.

Establishment. Finance

As andwhen

3 Generate a Master Updation Report.

Check the report against orders

received during the month.

Sign and file the report and employeewise documents.

Establishment

. Finance

Prior to

processing

of the

payroll forthe month.

Documents Records

DocumentTitle

DocumentType

FormatRef

Frequency Distribution

Appointment/transfer/

Promotion / any other

l tt / ti / d t

I - As and when - EstablishmentFinance Section

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Process: Payment of employee leased accommodation Process No.: 02

Process brief

This process lays down the procedure to be followed for payment of lease rent, deduction and

deposit of TDS.


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 periodof extension granted by the competent authority

Lease rental payments in respect of transferred employees is transferred to the concerned unitthrough inter unit debit advices

Lease master is updated with any new agreement /amendments to the existing agreementsi i f l l f h h

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Procedure: Maintenance of employee lease records


Responsible

Frequency Remarks

1 Receive the duly approved lease

agreement/ revision to agreement/

approval for retention of leased

accommodation/ termination of leaseagreement

Enter the relevant details in the system toupdate the lease master and salary masterto determine recovery/payment of arrears,

if any.

Establishment

Section

As and when

2 Review the data in the system with the

source documents and authorise the entryin the master.

Establishment

Section

As and when

3 Generate a Master Updation Report.

Review the changes in the master with the

original source documents.

Sign and file the report.

Establishment

Section

Monthly

before

processing

leasepayment.

4 Process the lease payment and generate: Establishment

S ti

Month-end

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Responsible

Frequency Remarks

5 Generate the following:

JV to account for the rent payable,recoverable from the employees, TDSrecoverable, adjustment of advancelease 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 rentpaid, Tax deducted at source

Forward the BPV and the JV to the

competent authority as per IWA for

verification and authorisation.


Section

Month-end

6 V if d th i th JV d BPV E t bli h t S d

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Responsible

Frequency Remarks

Bank.

9 Receive the receipted copy of the challanfrom cash and bank section and file it

EstablishmentSection

Same day

Document Records

Document

Title

Document

Type

Format

Ref


Lease agreement I - As and when - Establishment. Section

Rent pay orders O - Month end -

Lease Master R PR/ 02 -Reconciliation of leaserentals

Statement PR/ 03 Monthly -

Accounting Entries

On payment of lease rent to the landlords

I U i A/C (F id i f

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Process: Loans and Advances to employees Process No.: 03

Process brief

This process lays down the procedure to be followed for releasing 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. Thevarious 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 Computer Advance Furniture Advance Cycle Advance

The loans should be recovered in the manner prescribed which are either by :

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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, hasbeen 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 fornecessary action

Departments / sections responsible

Finance and Accounts Department Establishment Finance Section

HR DepartmentProcedure : Loans to employees

S.No Activity Person Frequency Remarks

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Responsible

Frequency Remarks

4 Receive the BPV and release

payment as per procedure detailed inmanual on Cash & Bank..

Cash & Bank

section

Same day

Recovery of loans

5 Make deductio ns from the pay bill as

per the terms of the loans.

Establishment

Finance

Monthly The employee

ledger for loans tobe updated with the

deductions made

from the payroll.

6 Update the interest on the principalamount outstanding calculated (as per

the rule) in the employee sub-ledger.

Generate a JV to account for theinterest accrued during the period.

EstablishmentFinance

Monthly

Documents - Records

DocumentTitle

DocumentType

Format Ref Frequency Distribution

Sanction/ Release Order I - As and

h

- Establishmenti

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Accounting entries

On payment of loans/ advance

Loans DrAdvances Dr

Bank Account Cr

On recovery of principal amount of loan/ advance from salary

Salary & wages DrLoans Cr

Advances Cr

Interest accrual at year -end

Interest Accrued Dr

Interest on employees loan Cr

On recovery of interest from salary

Salary and wages Dr

Interest Accrued Cr

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Process : Other Pers onnel Payments- Process No.: 04Overtime payments

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 hours 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

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Accounting entries

On payment of overtime

Overtime DrSalaries payable Cr

Salaries payable Dr

Bank Cr

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Process: Other Personnel Payments- Process No.: 05Leave Encashment

Process brief

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.


HR Department Finance and Accounts Establishment Finance SectionProcedure: Leave Encashment

S.No Activity PersonResponsible

Frequency Remarks

1 Receive the sanction order for leaveencashment duly approved by the HR

Department


As andwhen

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Frequency Remarks

3 Receive the BPV/CPV and releasepayment as per procedure detailed inmanual on Cash & Bank..

Cash & Banksection

Same day

Documents - Records

DocumentTitle

Document Type Format Ref Frequency Distribution

Sanction order for leave

encashment

Order - As and when - EstablishmentFinance

BPV Voucher - As and when - Cash and BankSection

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Process : Other Personnel Payments- Process No.: 06Leave Travel Concession

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



HR DepartmentProcedure: Leave Travel Concession

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S.No

Activity PersonResponsible

Frequency Remarks

copy of the application to Cash &

Bank Section for release of payment.

3 Receive the BPV/CPV and release

payment as per procedure detailed inmanual on Cash & Bank.

Cash & Bank

section

Same day

Processing of LTC bill and settlement of advance

4 Receive the LTC claim of the

employee (through HR Department)

Establishment

Finance

As and

when

5 Check the claim for the following :

Supporting documents (i.e. proofof journey, other relevant

documents) are attached Claim is as per the entitlementEnter the relevant details (personstravelled, journey period, place of

travel, amount claimed, taxableamount etc) in the LTC module and

generate the amount payable after


Same day

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S.No


Frequency Remarks

making the necessary deductions

from the payroll

Documents - Records

Document

Title

Document

Type

Format

Ref


Sanction order for LTC I - As and when - EstablishmentFinance

CPV O - As and when - Cash and BankSection

BPV O - As and when - Cash and BankSection

Employee Master R - As and when -Age-analysis of advancesoutstanding

R PR/MIR/01

Monthly - EstablishmentFinance Payroll

Section

Accounting entries

On payment of LTA advance

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Process : Other Personnel Payments- Process No.: 07Medical Reimbursement

Process brief

This process lays down the procedure to be followed for reimbursement of medical expenses.


Medical reimbursement claims are allowed only in respect of the employees and theirdependents

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 thehospitals as per the Act/Rules prescribed in this respectDepartments/ Sections responsible


HR Department

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Frequency Remarks

medical claim

Generate a BPV for the net amount

payable.

Forward the JV & BPV to thecompetent authority as per the IWA .

Update the perquisites on medical

reimbursement in the payroll master.

3 Verify and authorise the BPV and JVin the system and sign the hard copy.

Forward the BPV to the cash & bank

section for release of payment.


Same Day


payment as per procedure detailed in

manual on Cash & Bank..

Cash & Bank

section

Same day

Hospitalisation bills received from the hospital / Other Units

5 Receive the hospitalisation bills duly

approved by the competent authority

Establishment

Finance

As and

when

6 Check that: Establishment Same day

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Frequency Remarks

to be made from the employee

Generate a BPV for the payableamount

Forward the JV along with BPV to

the competent authority as per IWAfor approval.

8 Verify and authorise the BPV and JV

in the system and sign the hard copy.

Forward the BPV along with JV to

the cash & bank section for release ofpayment.

Establishment

Finance

Same Day

9 Receive the BPV and releasepayment as per procedure detailed in

manual on Cash & Bank.

Cash & Banksection Same day

Deposit of TDS and filling of Annual Income Tax Return

10 Prepare the challan for deposit of the

TDS with the authorities

Generate BPV for deposit of TDS.

Establishment

. Section

Within the

stipulated

time

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Frequency Remarks

Payments against Post Retirement Medical scheme

13 Verify the receipt of PRMS

contribution for the year

Receive PRMS card issued by HR

department and update the master

with beneficiary details

Receive the claim forms from the ex-

employee 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

Establishment

Finance

Same day

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Accounting entries

On payment of medical advances

Medical advance DrBank/Cash account Cr

On Reimbursement of Expenses

Reimbursement of Medical Expenses Dr

Medical Advances CrMedical Expenses payable Cr

Medical expenses payable Dr

Bank /Cash Account Cr

On Payment to the Hospital

Reimbursement of medical expenses (Hospitalisation) Dr

Inter Unit Account Dr

Amount Recoverable from employee DrMedical expenditure payable Cr

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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 beintimated 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 purposeDepartments / sections responsible

Finance and Accounts Establishment Finance Section

PF TrustProcedure: PF Loan payment and recovery/ Withdrawal

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S.No


Frequency Remarks

system and sign the hard copy.

Forward the BPV to the cash & bank

section for release of payment.

Section

4 Receive the BPV and releasepayment as per procedure detailed in

manual on Cash & Bank.

Cash & Banksection

Same day

5 Generate the schedule (in the

prescribed form) for submission ofinformation of PF loans/withdrawal

released and forward the same to the

PF Trust

Establishment

FinanceSection

Monthly

6 Receive proof of compliance for the

purpose for which the loan wassanctioned.

Generate a report of non-compliancefor review and follow up

Establishment

FinanceSection

As and

when butwithin thestipulated

time

Monthly

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Document

Title

Document

Type


Application for PF Loan I - As and when EstablishmentFinance Section

BPV/CPV O - As and when Cash and BankSection

ABDH Schedule O MIR/PR/03 Monthly PF Trust

Accounting Entries

On Release of PF Loan/Withdrawal

PF Withdrawal Dr

PF loan A/c DrTo Bank A/c Cr

(Recoveries of the loan amount and interest amount is to be made through the salary)

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Process: Tour advances and submission of Process No.: 09travel expense claims

Process brief

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 TAadvance 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 thesame 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 payrollunless settled by cheque.

In case of cancellation of journey, the advance amount is refunded immediately by the

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Procedure : Tour advances


Responsible

Frequency Remarks

1 Receive the request for tour advance

from the employees

Establishment

Finance

As and

when

2 Check that the

Request is approved by thecompetent authority as per DOP

Amount of the advance isreasonable (in terms of theduration of the tour and the

entitlements of the employee)

Ensure that there are no advancesoutstanding against the employee


Same day

3 Generate a CPV/BPV and forward to

the competent authority as per IWA

for approval.

Establishment

Finance

By the next

day

4 Verify and authorise the BPV/CPV inthe system and sign the hard copy.


Same Day

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Frequency Remarks

HR department.

Check that the supporting documents

such as movement orders/ credit note

for cancellation charges are enclosedwith the bill

Enter the details (employee name,

mode of travel, dates of travel, etc) inthe travel expense module to updatethe subledger for Tour Advance

liability account (employee-wise subledger 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 authority as per IWA

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Frequency Remarks

Travel expense claim of the employees

4 Receive the travel expense claimfrom the employees


As andWhen

5 Check that the

Claims (in respect of dailyallowance, boarding, lodging, etc)

are as per the entitlements

The relevant supportingdocuments are attached (in

respect of travel tickets, hotelbills, other sundry expenses, etc)

Advances (if any) have beenadjusted in the expense claim

Establishment

Finance

As and

when

6 Generate the following : 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 amountpayable to the employee Forward

EstablishmentFinance As andWhen

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Frequency Remarks

8 Receive the BPV/CPV and release


Cash & Bank

section

Same day

9 Review the tour Advance account

Incase of old advances, take the

necessary follow-up action (with theconcerned employee/travel agent)

Establishment

Finance

Month-end

Documents - Records

DocumentTitle

DocumentType

FormatRef


Request for Tour advance I - As and when - EstablishmentFinance

Travel expense Statement I - As and when - Establishment

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Travel Agent payable account Dr

Bank account Cr

On settlement of travel expense claim

Travelling expenses (including ticket booked by company) Dr

Traveling advance Cr

Travelling Expenses Payable Cr

Travelling Expenses Payable DrBank/Cash Cr

For Refund of Advance

Bank/Cash Dr

Travelling Advance Cr

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Process : Personnel Payments- Process No.: 10

Others

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, internetconnection, 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 Rulesand sanction order have been

complied with. For instance:

Conveyance Reimbursement as per the rates prescribed for the categories of employees and

the type of vehicleMerit Scholarship - the courses applicable, period, amount, no of dependents in respect ofwhich 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, etcMembership 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

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Frequency Remarks

Arithmetical accuracy of theclaims

3 Generate a BPV.

Forward the BPV to the competentauthority as per IWA for approval.


By the nextday

In case the paymentis to be made with

the salary followthe procedure for

salary processing4 Verify and authorise the BPV in the

system and sign the hard copy.

Forward the BPV to the cash & banksection for release of payment.


Same day



Cash & Bank

section

Same day

Documents - Records

Document

Title

Document

Type

Format

Ref


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Process: Transfer of employees - Process No.: 11Generation of Last Pay Certificate

Process brief

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 shouldcontain 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 balancesoutstanding 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 duescertificate 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 tothe transferee unit.

In case an employee is released during the month it should be ensured that salary is drawn for

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Frequency Remarks

the employee from the HR

department

2 Update the employee master, leavemaster and the advances master and

generate the LPC and schedule C (5copies).

HRDepartment/


By the nextday

3 Review the LPC, ensure that all thedetails have been incorporated and

approve the LPC (both in the system

and the hard copy)


Same day

4 Generate a JV and an inter unit

advice on the unit to which theemployee is transferred

Follow the procedure outlined in themanual on Book Section for

generation and sending of inter unitadvices

Establishment

Finance

By the next

day

5 Forward a copy of the LPC to the

Establishment Same day

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DocumentTitle

DocumentType

FormatRef


LPC

Schedule C

R

R

PR/08

PR/09

As and when

As and when

- Establishment Finance -transferee/ transferor unit

- HR Department -transferee/ transferor unit

- Employee- Establishment Finance

transferee/ transferor unit

Accounting Entries

Transfer of balance of various advances

Entry in the book of transferor unit

Inter unit A/c (Transferee Unit) DrAdvances A/c Cr

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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


The process of final settlement is initiated on receipt of office order and the likely date ofrelieving 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

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Frequency Remarks

1 Receive the retirement/ relieving/

termination order from the HRdepartment with the likely date of

relieving. Ensure that the orders and

certificates are duly approved by thecompetent authority

Receive the no dues certificate from

HR and compute the final amountpayable to the employee based on the

no dues certificates received and

other relevant details (such ascompleted years of service,

encashable leave balance, etc.)

Establishment

Finance

As and when

2 Update the employee master.

Review and approve the final

settlement statement. Ensure that

deduction has been made for amount

outstanding including Income tax, PFetc.


Same day

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Frequency Remarks

manual on Books section for

verification and authorization of JV

Forward the BPV to the Cash & Bank

sect ion for release of payment.



Cash & Bank

section

Same day

Documents - Records

Document

Title

Document

Type

Format

Ref


Order of relieving ofemployee

I - As and when - EstablishmentFinance Section

- HR DepartmentNo dues certificate I

1

PR/07A

PR/07B

As and when - Finance DepartmentFinal Settlement

Statement

O PR/10 As and when - EstablishmentFinance

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Process: Processing of payroll and disbursement Process No.: 13

Process brief

This process outlines the procedure to be followed for the processing of the payroll and thedisbursement 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/ informationrelating to the payroll master obtained subsequent to the 20

thwould 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


Deductions, if any, on account of non submission of claims/ non adjustment of advances instipulated time have been made

The gross pay as per the current month has been compared with that of the previous monthand 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 withinthe stipulated time frame have been issued to the employee concerned

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S.No


Frequency Remarks

HR Department

Data for the generation andconstruction incentive from the

Industrial Engineering

Department

DA for the quarter from the HRdepartment

Confirmation from the sectionconcerned regarding recovery of

outstanding advances (e.g. staff

advance, tour advance etc) for

adjustment in the payroll

Approved validation report ofsupplementary and other manual

payments/ recoveries from therespective sections

Receipt of houseallotment/vacation statement from

the HR Department.

Carry out the rectifications/

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S.No Activity PersonResponsible Frequency Remarks

4 Forward pay slips to the head of the

respective departments fordistribution to the employees

Establishment

Finance

By the next

day

Gross Pay variance (GPV) statement

5 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 statementfor exceptional variances (amount/

item wise).

Analyse the reasons for the variances

and crosscheck the same with thevalidation reports for the month to

ensure overall accuracy of the paybill.


After thepayroll

processing

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DocumentTitle DocumentType FormatRef Frequency Distribution

Statement of Generation

Incentive for the month

I - Monthly - EstablishmentFinance

Circular for DA I - Quarterly - EstablishmentFinance

Validation report of

outstanding advances for

deductions from payroll

I - Monthly - EstablishmentFinance

Payroll summary O PR/11 Monthly - EstablishmentFinance

Salary slips O PR/12 Monthly - EmployeesBank Schedule O - Monthly - Cash and Bank

Section

- BankBPV O - As and when - Cash and Bank

Section

JV O - By the next

day of

generation of

payroll

- Book Section

Gross Pay Variance

statement

R MIR/PR/05 Monthly - EstablishmentFinance

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Accounting for PF liability

PF Employer Contribution Dr

PF Employee Contribution Dr

Other PF Recovery DrAdvance to PF Trust Cr

Pension Fund Cr

Payment of Salary

Salaries payable DrBank Account Cr

Inter Unit Advice for recovery /payment made based on advice/LPC

Salary A/c Dr/Cr

Inter Unit A/c (concerned station) Cr/Dr

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Process: Payment under NTPC Employees FamilyEconomic Rehabilitation Scheme Process.:14

Process brief: This process lays down the procedure to be followed for processing of paymentunder 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


Finance and Accounts Establishment Finance Section

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4 Ensure that the masters have been

updated for the month.Process the NEFRS master and

generate the NEFRS bank schedule.

Establishment

Finance

Before

processingNEFRS

payment

5 Process for release of payment EstablishmentFinance

On the lastworking day

of the month6 Generate BPV for the monthly

amount payable.

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


On the Istworking day

of the month

7 Release payment as per proceduredetailed in manual on Cash & Bank

Cash & Banksection

Same day

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Process: Processing of payroll and disbursement Process No.: 15- Executive Trainees (ET)

Process brief

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 toeffect the recoveries from the payroll.


Finance and Accounts Establishment Finance Section, EOC

PMI

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Process: Determination of Tax Deducted at Source (TDS) Process No.: 16

Process brief

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 theemployer. 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 theemployee 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 thebeginning 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 installmentsfrom the salary of the employees

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2 Issue a circular to all the employees

for submission of tax savingsdeclaration forms

Establishment

Finance

1st

week of

September

3 Obtain the tax savings forms from the

employees alongwith Form 12-C,wherever applicable.

Establishment

Finance

By 1st week

of Feb*/March

4 Enter, the details of the tax savingssubmitted, in the system

Generate a validation report of all the

additions made to the master.


As and whenrequired

5 Review the validation report with the

supporting documents

Update the entry in the system

I/c -

Establishment

Finance

Same day

6 Process the system for calculation of

the TDS to be deducted

Establishment

Finance

End of the

month along

with payroll

processing

Generation of Form 16

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Generation of Annual Return

8 Process the Annual Return forsalaries in the prescribed Form (Form

24)

File the duly completed and approvedforms with the Income-tax authorities


Within thestipulated

period

Documents - Records

DocumentTitle

DocumentType

FormatRef.


Declaration forms of

Savings/ External income

I - Annually - Establishment-Finance

Calculation slip O PR/13 Monthly - EmployeeForm 16 O - Annually - EmployeeForm 12BA O - Annually - Income Tax

- AuthorityForm 24 along withnecessary annexure

O - Annually - Income Tax- Authority

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Process: Deposit of statutory dues and other payments Process No.: 17

Process brief

This process lays down the procedure for depositing statutory dues with the authorities and otherpayments.

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, NTPCPension, 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

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Procedure: Deposit of statutory and other dues

S.No


Frequency Remarks

Deposit of TDS

1 Prepare the challan required for

remitting the amount to theauthorities based on the payroll

summary and manual adjustments, if

any

Forward the same to the competentauthority for approval with the

relevant supporting documents i.e.

payroll summary BPV manual adjustments, if any

Establishment

Finance

Within 2

days ofpreparation

of payroll

2 Verify and authorize the BPV and

sign the challan and forward to Cash

& Bank section for releasing

payment.

Establishment

Finance

Same day

3 R i th BPV d h C h & B k S d

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S.

No

Activity Person

Responsible

Frequency Remarks

5 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 PFcontrol account (in the specified

format i.e. ABDH) from all the units

Based on the summaries received andthe credit balance in the trust accountand advance to PF trust account in

NTPC books, ascertain the netamount receivable and lodge a claim

for disbursement to the company

PF Trust By the 7th

of

the followingmonth

6 Receive a (provisional) claim from

the PF Trust for deposit of the duesfor the month

Generate a BPV and release the

payment to the PF Trust as per theprocedure outlined in the manual on

Establishment

FinanceSection (C.C.)

By the 10th

of thefollowing

month

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Documents - Records

Document

Title

Document

Type


Challan I/O - As and when - BankBPV O - As and when - Cash and Bank

Section

ABDH Schedules I MIR/PR/ 03 Monthly - PF Trust CCInter unit advice/JV O - As and when - Book SectionAccounting Entries

Deposit of Income Tax

I.Tax Deduction DrBank Account Cr

Accounting of PF

Contribution to PF including Co. contribution, VPF, PF Loan Recovery Dr

PF Payable a/c Cr

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PR/01

EMPLOYEE MASTER

Employee Details

Name No.Designation Grade

Department CodeDate of joining NTPC

Date of joining the location

Date of Birth

PAN No.Date of Retirement

Date of leaving

Particulars of pay structure

Earnings

(provide details of items)

Deductions

(provide details of items)

Details of Bank

Name Code

Account No.

Dependents Details

Number

Name Relation Age

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Employee Loan/ Advances LedgerAs on ---------------------- Advance san

Advance Type : Ref No.

Account Head: Amount (Rs.)

Account Code: Repayment Terms

Employee Name

No

Department

Designation

Advance Sanctioned Disbursements Deductions frompayroll

Interest accrued Balan

Ref Amount(Rs)

InterestRate

(%)

RepaymentTerms

BPVNo

Date Amount(Rs)

Month Amount(Rs)

OpeningBalance

Accruedduring

the

period

ClosingBalance

Princ

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Any other reasons (provide details)

Total (D) [should be equal to B above]

Reconciliation with the charge to the P&L Account

Particulars Amount (Rs)

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)]

Analysis of DifferenceAmount 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 ----------------

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PR/06

OVERTIME STATEMENT

For the month ended ---------------------

Employee Overtimeclaimed till

previous month

Claim for the

current month

Cumulative

OTName No Des/

Grade

Deptt

Hours Amount

(Rs)

Hours Rate

(Rs)

Amount

(Rs)

Hours Amount

(Rs)

OT

allowed

as per

Rules

(Hrs)

Remarks

TOTAL

Prepared By -------------------------------- Approved By ---------

----------------------

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MIR/PR/07NODUES CERTIFICATE

As on -----------------

Location ---------------------

Employee name Employee No

Designation Grade

Department Dept code

Date of Joining Date of Release

Reason for relieving the employeeRef. No

Amount Due From the Employee (Rs) Amounts Due to the Employee (Rs)

- Petrol- Electricity- LIC- HBA Insurance- Lease Rental/ AdvanceAdvances outstanding- LTC- Tour Advance- Medical- Staff advance

- Establishment- PSL- Works

- Imprest

Generation Incentive

Oil Incentive

Ease Maintenance Paid uptoConveyance Maintenance paid upto

Any other dues

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MIR/PR/08LAST PAY CERTIFICATE

Employee ParticularsName

Number

Designation

Grade

Department code

Other ParticularsDate of joining NTPC

Date of joining at present place of posting

Date of birth

Relieving date

Relieving Authority

Salary paid uptoIncrement month

Old increment monthStagnation Increment Amount 1

st2

nd3

rd

Pay Structure

EarningsBasic Pay

DAOther Allowances

ReimbursementsOvertimeIncentives

Total (A)

DeductionsAdvances

Lease rentalPF

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

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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 AdvanceamountSanctioned anddate of sanction

(Rs)

Advance

amountAvailed

(Rs)

Periodof loan Installmentamount

(Rs)

Rate ofinterest AccruedInterest

(Rs)

AmountRecovered

(Rs)

Amountoutstanding

(Rs)

Advances

Type

Total

Advance amount

(Rs)

Amount

Recovered(Rs)

Balance Outstanding

(Rs)Recovery

terms

Prepared By ------------------------------- Approved by ----------------------------------------

Note:

Th OT h t b i di t d t th t th ll li it f OT h i t d d

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PR/09SCHEDULE 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

EmployeesName

Emp.No

Members Cont

Bonus TotalMembers

Contribution

Intt. CompanysContr

Intt Total Iu

1 2 3 4 5 = (3+4) 6 7 8 9 =(5+6+7+8)

ANNEXURE I

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ANNEXURE I

ADDENDUM TO SCHEDULE C

1. ISSUING UNIT2. RECEIVING UNIT3. ADDENDUM TO SCH. C NO.4. S.NO. OF SCH. C5. NAME OF MEMBER6. EMPLOYEE NO.7. DATE OF 1ST APPLICATION8. DETAIL OF DWELLING UNIT

FOR WHICH NRA FOR HOUSE /PLOT / FLAT SANCTIONED

MEMBERS COMPANYS

CONTRIBUTION CONTRIBUTION

9. LIMIT FIXED AS PER CLAUSE 48 OFTHE RULES.

10. NRA FOR THE PURPOSE PAID11. BALANCE LIMIT

EXECUTIVE

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PR/10FINAL SETTLEMENT STATEMENT

Employee Name

Employee Code

Date

PAYMENT RECOVERYParticulars Amount (Rs.) Particulars Amount (Rs.)

Leave Encashment Advances RecoverableEarned Leave :

Basic

DA

Spl PayFP Incentive

TA Advance

Motor Car advance

Multi purpose Advance

House Build ing Advance

Furniture

Half pay Leave: (half of each element)Basic

Spl Pay

Add Full DA

Recoveries on account of Income Tax

PF

IncentivesGeneration

Construction

Others

Provident Fund payable on salary recovery

Others

Total Total

Total amount Payable/ Recoverable

Amount paid / received vide cash/ cheque No -------------------------- dated ----------------------------

Prepared By --------------

Authorised By --- -----------------

Enclosed Income Tax calculation Detail

`

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PR/11

PAYROLL SUMMARY

Employee Payments RecoveriesName No Desg/

Grade

DepttBasic DA HRA Incenti

vesOver-time

Others Total PF &income

tax

InsurancePremia

Recoveriesfor

Advances

Cont toother

funds

Total`Net SalaryPayable

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PR/12SALARY SLIP

FOR THE MONTH OF -------------------

Location Slip No

Employee No Name

Grade DepttNTPC Joining Date Location joining Date

Bank Account No Bank Code

EARNINGS DEDUCTIONSBasic Pay PF/ GPF

VDA VPF

CCA/ FCA/ SCA Employee Pension

HRA Additional Contribution

Incentives- Generation- Oil- Construction-

Others

Income tax

LIC

HBA Insurance

Benevolent Fund

Night Shift

Over time Payment

Merit Award

Subsidies

- Transportation- Lunch- Others

Recoveries

LoansElectricity

Petrol

Reimbursements

- Education- Washing- Literary- Tea- Others

Adjustment of Advances

- Multi purpose- Tour Advance- Others

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Gross Income Gross Deductions

NET PAY

YTD DETAILS UPTO ---------- (Current month)

Gross Income

Incentives

VPFI Tax

Benevolent Fund

PF

Pension

Overtime payments

LEAVE DETAILSType Month Year Days

OUTSTANDING LOAN DETAILS as on dateType Principal Interest Total

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PR/13CALCULATION SLIP

Employee ParticularsName No

Designation GradeDepartment code

PAN No

Details of Earnings

Particulars Amount AmountIncome from Salaries

Details as applicable for the employee

Less : Standard Deduction

Net income from Salaries (A)

XXXX

XXXX

XXXXExternal Income (B)

Provide head wise details XXXXXXXX

XXXXGross Total Income ( C) [A+B] XXXXDeductions under Chapter VI A (as prescribed) (D)

Details as per the declaration provided by the

employeeXXXX

XXXX XXXX

Taxable Income (E) [C-D] XXXX

Tax Rate (F) XXXX

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As per the provisions of the Income Tax Act, as

applicable

Tax on Total Income (G) [E*F] XXXX

Rebate (H)

As per the investment details provided by the

employeeXXXX

XXXX XXXX

Tax Payable (I) [G-H] XXXXSurcharge (J)

At the prescribed rates XXXXTotal tax payable (K) [ I+J] XXXXMonthly tax to be deducted (L) [K/12} XXXXTax Deducted for the year (till date) (M) XXXXBalance Tax to be deducted [K-M] XXXX

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MIR/PR/01Statement of outstanding advances As on ----------------Account Head ----------------Account Code ------------------

Employee AdvanceName NoDepartment Deptt

Code Date ofadvance

Balance(Rs)

Period ofOutstanding

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

MIR/PR/02

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MIR/PR/02MEDICAL REIMBURSEMENT STATEMENTFor the Quarter ended -----------

Employee

Claim detailsDisbursement

Type of claimName No. Desg Grade Deptt

code

Claimed

passed tllprevious

Qtr (Rs)

Claims

duringthe

quarter

(Rs)

(H/NH) (S/ D)

Paassed

Amount(Rs)

Cumm Amount

of claimed (Rs)Passed (Rs)

BPV

No.

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)

MIR/PR/03

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MIR/PR/03A,B,D, H SCHEDULE FOR THE MONTH OF ---------------------------

Sl. No Particulars Amount For the Month Cumulative Amount(upto the current month)

SCHEDULE A1 P.F. wages ( Basic Pay + D.A )

2 FPF Wages

3 Members Contribution

4 Employer Contribution

5 V.P.F

6 Refund of Advance

(excluding interest recovered)

7 Interest on refundable advance recovered from members

8 Penal interest recovered on refund of Non-refundableadvance

Total (2 to 7)

SCHEDULE B

Final Settlement/ Transfer Out of Member9 Members Contribution

10 Companys Contribution

Total (8+9)

SCHEDULE D

11 Refundable Advance

12 Non- Refundable Advance- Members Contribution- Companys contribution Total (10+11)

SCHEDULE H

12 Funeral expenses paid on behalf of PF Trust

13 Unclaimed amount

Total (B+D+H)

Net ABDH (A-(B+D+H))

Prepared By ----------------------------------- Approved By -------------------------------

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---

MIR/PR/04

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MIR/PR/04STATEMENT OF ENTITLEMENT CLAIMEDFor the Quarter Ended ------------------

Entitlement Type ---------------------Account Code ---------------

Employee Entitlement Claim Disbursement details for

the quarter

Name No. Desg Grade Deptt.

code

Entitle

ment asper

rules

Till

Previous

Quarter

(Rs)

Claim

for the

Quarter

(Rs)

Cumulative

till the

quarter-end

(Rs)

Balance

Amount

payable

(Rs)

BPV No Date Amount

(Rs)

Remarks

Prepared By ------------------------------ -- Approved By ---------- -------------------

Note:

The statement to be prepared in respect of all types of entitlements

MIR/PR/05

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MIR/PR/05GROSS 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- Reimbursements TOTAL


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GROSS PAY VARIANCE ANALYSISFor the month of --------------

Particulars Amount

(Rs.)

Amount

(Rs.)

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


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GROSS PAY VARIANCE ANALYSISFor the month of --------------

Particulars Amount

(Rs.)

Amount

(Rs.)

No of employees at the beginning of the monthAdd: 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

Fm Pa

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