Seigniorage Charges - Important short notes question

                                                 Seigniorage Charges

ü   Are reference to excavating earth moorum, sand and other minerals.

ü  Fixed by the State Government.

ü  Recovered by the Railways from the contractors from “On Account” and “Final Bills” and remitted the same to the State Government.

ü  The rates quoted by the tenderer shall be inclusive of these charges.

ü  Seigniorage may be counted as revenue for a government when the money that is created is worth more than it costs to produce it. This revenue is often used by governments to finance a portion of their expenditures without having to collect taxes. 

example   It costs the government Rs.5 to produce a Rs.100 currency note, the seigniorage is Rs.95 or the difference between the two amounts.

ü  The revised seigniorage charges as fixed by the Government in G.O.Ms. No. 331 Industries and Commerce (M-1) Department dated 21-6-2000 read with the G.O.Ms.No.466 Industries & Commerce (M-1) Department, dated 24.8.2000, may be adopted as :

Sl No.	Name of the Mineral	Rate of Seigniorage Fee
1	Building Stone	Rs. 33/- per CMT
2	Rough Stone	Rs. 33/- per CMT
3	Road Metal	Rs. 33/- per CMT

Note:

 If any change in the above rates/instructions, readers are hereby requested to bring to the  notice of the Blogger for updation.

                                                                ********