Section 30 of The Road Transport Corporations Act, 1950
Disposal of net profits.
After making provision for payment of interest and dividend under section 28 and for depreciation, reserve and other funds under section 29, a Corporation may utilise such percentage of its net annual profits as may be specified in this behalf by the State Government for the provision of amenities to the passengers using the road transport services, welfare of labour employed by the Corporation and for such other purposes as may be prescribed with the previous approval of the Central Government, 2[and out of the balance such amount as may, with the previous approval of the State Government 1***, be specified in this behalf by the Corporation, may be utilised for financing the expansion programmes of the Corporation and the remainder, if any, shall be made over to the State Government for the purpose of road development].
Summary
- This provision explains how a transport corporation must use its leftover money after paying bills and saving for repairs.
- A portion of the profit must go toward making passengers more comfortable, such as building bus shelters.
- Some profit is used for the welfare of the workers, such as providing health or safety programs.
- The corporation can use remaining money to grow its services if the State Government agrees.
- Any money still left over at the very end must be given to the State Government for road building.
Practical examples
FAQ
1. What is the priority for net profits under Section 30 of the Road Transport Corporations Act, 1950?
Under Section 30 of the Road Transport Corporations Act, 1950, profits are handled only after paying interest, dividends, and setting aside money for depreciation and reserves.
2. Can profits be used for bus driver welfare under the Road Transport Corporations Act?
Yes, Section 30 of the Road Transport Corporations Act, 1950, allows utilizing a percentage of profits for the welfare of labour employed by the corporation.
3. Where does the final remaining profit go under Section 30 of the Road Transport Corporations Act, 1950?
According to Section 30 of the Road Transport Corporations Act, 1950, any remainder must be given to the State Government for road development purposes.
4. Does the Central Government have a role in profit disposal under the Road Transport Corporations Act?
Yes, Section 30 of the Road Transport Corporations Act, 1950, states that using profits for certain prescribed purposes requires previous approval of the Central Government.
Test yourself
1.Under Section 30 of the Road Transport Corporations Act, 1950, what must be done before spending net annual profits?
2.Under Section 30 of the Road Transport Corporations Act, 1950, who specifies the percentage of profit for passenger amenities?
3.According to Section 30 of the Road Transport Corporations Act, 1950, what is the final destination of leftover funds?
4.Under Section 30 of the Road Transport Corporations Act, 1950, what must be done regarding Section 29 funds before net profits are utilized?