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Advance should not be paid in less than two installments except in special circumstances for that
reasons to be recorded.
A clause in the tender enquiry to be incorporated that the interest free advance would be
deemed as interest bearing advance at a Bsae rate of SBI plus 3.5% if the contract is terminated
due to default of the contractor. However rate of interest should be applied for calculation of
interest on the advance amount in reset basis (i.e. not fixed rate of interest, it may go on changing
during the period of advance remain unadjusted) based on the change of base rate time to time.
Advance should be recovered within the original completion
time.
II) Other advance: provision for 100% advance (interest free) without submission of BG may
also be allowed in dealing with procurement on single tender basis from CPSU/Govt. controlled
autonomous Organisation / Universities / Laboratories/ Reputed Private Manufacturer as OEM
etc.
Specific examples are:
—
a) Procurement of LDO/FO/HSD/Motor Spirit/Lubricants & Greases from CPSUs
like
IOC/HPCL/BPCL
.
b) Procurement of Steel from CPSUs like SAIL, IISCO, RINL
etc.
c) Procurement of Vehicles from Tata Motors, Hindusthan Motors, Maruti Udyog, Hero
Hondo, Bajaj, Enfield etc.
d) Testing/consultancy & other services from CPSUs like CMERI, CMRI, CPRI CFRI,
NTPC, IIT’s, IIM’s, NPC,BSNL etc. and
e) OEM’s who do not sell their product without
advance.
Where a claim of Sales Tax/VAT is preferred and admitted, the supplier must satisfy that he is a
registered dealer under the Sales Tax Act and possesses a Certificate of Registration in the firms
name in which the supply is made and shall in proof thereof, while submitting bills for payment,
furnish the, number, date and other particulars of such certificate.
For materials which are ordered on weights/ volume, the payment should be as per
measurement at DVC’s stores / sites irrespective of the quantity mentioned in the challans /
documents, unless there is explicit provision in the Purchase Order/contracts. If there is 3 rd party
inspection, in the above cases, 3 rd party inspection charges would be as per Weight/ Volume
received at DVC end. The statutory charges and duties, however, have to be paid on actuals as per
documents received from the vendor.
The contractor/vendor shall furnish the following certificate to the Paying Authority along
with each invoice/bill against payment for supplies made against any supply order/RC with
W& P Manual – 2012 Page 85