National Sample Survey, 2006-2007 (63rd round) - Schedule 2.345 - Service Sector Enterprises

Data file: NSS63_Sch2-345_bk_4_5_6

Block 4: Principal receipts

Block 4 will record the principal receipts in seven sub-blocks corresponding to which the principal expenses have already been collected in block 3. The items are earmarked activity wise in the sub-blocks against which the selected important receipts will appear. The following general points may first be noted for recording data in blocks 4 and 4.1:
i. Reference period for this block will be same as the one used for blocks 3 and 3.1.
ii. There will be some commonality in items between blocks 4 and 4.1. Precaution has to be taken that whenever an item has already been covered in block 4, receipts are not duplicated against a similar item in block 4.1.
iii. The value of services produced for sale/ use/ free distribution/ home consumption will be recorded in whole number of rupees.
iv. The value of the services as charged from the customers will be reported here. It includes excise duty payable or sales tax realised by the enterprise on behalf of the Government as also all the distributive expenses such as, discount or rebate, allowances for returnable cases and other packing or any other drawback allowed to customers, charges for carriage outward (i.e., outward transportation), commission to selling agents, etc.
v. Care may be taken that the distributive expenses included in the receipts in block 4 are consistent with those recorded in item 453 of block 4.2.
vi. For grants/donations please refer to paragraph 3.0.7.

- First sub-block: Hotel and restaurant activities (NIC-04 group 551 and 552): In this sub- block all principal receipts in relation to the hotel and restaurant activity will be recorded. Four items are kept for the purpose.
- Second sub-block: transport (NIC-04 group 602, 611, 612, class 6301 and 6303 to 6309)
- Third sub-block: storage (NIC-04 class 6302): Item 408 is intended to collect the service charges received by the storage and warehousing enterprises. Godowns used for storing of own produce are not to be considered. No imputation is needed if commodities are stored in one's own warehouse.
- Fourth sub-block: communications (NIC-04 group 641 and 642): Total charges receivable from customers (STD/ ISD/ courier/ fax/ internet/ e-mail, etc.) services will be noted against item 411. The receipts for services provided during the reference period will only be recorded by receivable approach. Total receipts means both the payments made to service providers and the commissions.
- Fifth sub-block: real estate, renting and business activities (NIC-04 division 70 - 74): Receipts from service provided and brokerage charges are to be recorded against items 412 and 413 respectively.
- Sixth sub-block: Educational activities (NIC-04 group 801, 802, 803 and 809): The receipts include earnings from fees (tuition fee, transport fee, laboratory fee, library fee, development fee, etc), and donations/ grant from government as well as individual persons/ organisations. Receipts from students on account of sale of textbooks or uniforms will also be shown.
- Seventh sub-block: health and social work (NIC-04 group 851, 852 and 853): Like educational enterprises, here also receipts include earnings from consultation fees, receipts for various services provided, government grants and donations from persons and organizations. Many medical practitioners do not only charge consultation fee, but also makes the purchase of medicines against his prescription from his dispensary obligatory. In such cases, receipt against this prescription will also be shown as receipts of the doctor. In case of hospitals or nursing homes, receipts for service other than that rendered by doctor like OT charge, pathological tests, and expenditure on diet for patients, cabin, ICCU, etc. may be shown against respective items described below.

Block 4.1: Other receipts during the reference period

This block is applicable to all enterprises. For the specific activities mentioned in the seven sub- blocks of block 4, this block will record the receipts not covered there. But for all other community, social and personal services etc. this block will provide the principal and also the incidental receipts. This block is having two sub-blocks-receipts from manufacturing and trading and other receipts.
- First sub-block: Receipts from manufacturing and trading
- Second sub-block: Other receipts

Block 4.2: Calculation of gross value added for the reference period
This block has only three items. The items 451 and 452 are transfer entries from blocks 3, 3.1, 4 and 4.1 and are mostly self-explanatory. Item 453 will be used to record the distributive expenses which include excise duty, sales tax, VAT, commission to selling agents, outward freight and transport charges, etc. of the enterprise. Care may be taken so that the sum of distributive expenses recorded in item 453 is consistent with those incorporated in column 3 of block 4. If values of receipts are collected at ex-factory price, distributive expenses should not be recorded. The value-added figure is obtained against item 459 with proper sign and in whole number of rupees. In case of negative entry, further queries may be made and appropriate codes may be provided in block 12.


Block 5: other receipts/expenditures during the reference period: all non-financial enterprises

Item 501-544 would correspond to other expenditure/receipts and appropriations where 'other expenditure/receipts` are expenses and receipts not related to entrepreneurial activities. None of the items described through items 301 to 365 of blocks 3 and 3.1 will find a place in any of the items 501 to 514 of this block. Similarly, none of the items described through items 401 to 448 will find a place among items 531 to 544 of this block. The reverse is also true, i.e., during enquiry on receipts and operating expenses of an enterprise, expenses described through items 501 to 514 will not be recorded in any of the items 301 to 365 and receipts described through items 531 to 544 will not find place in any of the items 401 to 448.

It may be noted that different enterprises maintain their books of accounts in different fashion and uniform practice is not followed throughout the country. However, the item descriptions have been made so that it fits descriptions written in different types of books of accounts to the extent possible. All of the items 511 to 514 of block 5 cannot strictly be called 'expenditure'. Items 511 to 514 appear in many profit and loss accounts as items under appropriation of gross profit before depreciation and taxation.


Blocks 3 to 5:- Data on receipts and expenditure of all non-financial enterprises will be collected using these blocks. Items 301 to 395 of blocks 3 and 3.1 and item 502 of block 5 are for collecting data on various items of intermediate consumption of an enterprise. Items 401 to 487 of blocks 4 and 4.1 will record the receipts due to entrepreneurial activities. Block 5 will be used to record other items of expenses and receipts of these enterprises. Care may be taken so that there is no omission or duplication of entries on expenses between blocks 3, 3.1 and items 501 to 514 of block 5. Similarly, omission or duplication of recording receipts may be avoided between blocks 4, 4.1 and items 531 to 544 of block 5. If the value of the receipts in block 4 is collected at ex-factory price, then distributive expenses will not be recorded in item 453. Gross value added using product approach will be computed using block 4.2. In normal situations, gross value added is found as positive. However, if the gross value added arrived at is negative, remarks as per specified codes, and additional remarks, whenever necessary, must be provided in blocks 12 and 13.


Block 6: Gross Value Added during the reference period: all financial enterprises (NIC 2004 codes 659 and money lending from own source (65925), Self-Help Group (65994), co-operative credit societies (65995))

Block 6 will not be filled-in for non-financial enterprises (and Blocks 3 to 5 will not be filled-in for financial enterprises).

It may be noted that method of computing gross value added for the enterprises engaged in financial intermediation is different from that of the non-financial enterprises. Hence, the items of receipts and expenses used for computing gross value added for the financial enterprise should not be equated with those of the non-financial enterprises. For all the financial enterprises only this block will be used to compute the gross value added. Reference period, thus for this block will be reference year if data is recorded from books of accounts, but will be reference month when data is collected orally.

It may be noted that monetary intermediation (NIC 2004 code 651) is outside the coverage of the survey. This activity mostly means banks. For operational convenience, a bank may be defined as a financial enterprise, which can issue chequebooks, demand drafts, banker's cheques, etc. to its depositors. Presently many of the banks are also engaged in activities other than banking, like security trading, home loans, insurance, etc. If such an enterprise is selected for survey, it may first be ascertained whether the major income of the enterprise during the reference period was from banking or other activities. Depending upon major income, if the activity of the enterprise is found to under NIC 3-digit code 651, it will be considered as a 'casualty' in case of list-frame or will be substituted in case of area-frame. If there is no additional enterprise available in the area frame for substitution, this will be treated as casualty.

Separate codes have been provided for three financial activities, viz. money lending from own source (65925), Self-Help Groups (65994) and co-operative credit societies (65995). This will help to identify them at later stage. It may be noted that pawn shops (i.e., enterprises those keep some object on mortgage before giving loans) are under NIC 2004 code 65929. Some moneylenders may also keep goods from households on mortgage before giving loans to households. As long as money lending activity is done using own money, irrespective of whether the enterprise lending money keeps some articles on mortgage or not, it will be given NIC code 65925 (and not 65929). However, all registered pawnshops will be given NIC code 65929.