Section 30 in The Central Government Account (Receipts and Payments) Rules, 1983
30. Claims of, and payments to Suppliers, etc.
(1)When a person not in the Government employment claims payment for work done, service rendered or articles supplied, such claims shall, unless there are express orders of the Government to the contrary, be submitted through the Head of the Department or other responsible Government officer under whose immediate order the service was done or the equivalent was given for which payment is demanded. The officer to whom such a claim is submitted, shall be responsible for Completing the necessary formalities and for making the payment with due expedition. The payment may be made by the officer by any recognised mode of payment, that is by cheque as far as possible or by bank draft, or by Cash or by postal money order at the request and expense of the payee concerned. The other relevant rules of this Section may also be observed for the purpose. A certificate to the effect that the payment has been made to the proper person and that a proper acknowledgement has been obtained and filed in his office may be sent to the Accounts Officer when the payment is made to a private party.(2)Payments to pensioners are governed by rules 319 to 374 (both inclusive) and 441 of the Treasury Rules of the Central Government.Note 1. - Payments due to contractors may, if so desired by them, be made to their banks instead of direct to contractors, provided that the department concerned obtains:(i)an authorisation from the contractor in the form of a legally valid document such as a power of attorney or transfer deed, conferring authority on the bank to revive payment, and(ii)the contractor's own acceptance of the correctness of the amount made out as being due to him by the Government; or his signature on the bill or other claim preferred against the Government before settlement of the account or claim by payment to the said bank. While the acknowledgement by a bank of cheque or draft received towards payment shall constitute a full and sufficient discharge, for the payment, contractors should, wherever possible, be induced to present their bills duly receipted and discharged through their bankers. Nothing herein contained should operate to create in favour of the bank any right or equity vis-a-vis the Government.Note 2. - Income tax is required to be deducted at source at the rate of 2 per cent in all cases of payment to contractors and sub-contractors exceeding Rs.10,000 in terms of the provisions of Section 194-C of the Income Tax Act, 1961 (43 of 1961).
