Payment under authorization must be specified in the contract

Mon, 16 Apr 2018 15:35:53 PM GMT + 7    Print   Email   Share:

(Chinhphu.vn) – Mr. Tran Trung Kien (in Hochiminh City) signed a sales contract with a state agency that using the budget and having an account at the State Treasury. Pursuant to the Article 3 of the Circular No. 119/2014 / TT-BTC, Mr. Kien's unit designates the purchaser to pay for goods (valued at over VND 20 millions) into a third party’s account).


The third party is a legal entity operating in accordance with the law. Mr. Kienwould like to ask, the purchase of goods from the buyer's account opened at the State Treasury to the third-party accounts designated by the seller, is this  in accordance with the law?

Regarding this issue, The State Treasury has the following opinions:

At Point c, Clause 6, Article 3 of the Ministry of Finance's Circular No. 119/2014 / TT-BTC dated August 25, 2014, the following regulations shall apply: "c) Where purchased goods and services are paid through a third party’s payment via bank (including the case that seller requires the buyer to pay the bank via the third party appointed by the seller), payment under authorization or payment to the third party must be specified in the contract in the form of a document and the third party shall be a legal person or a natural person operating under the provisions of law. "

Under the provisions in Circular No. 39/2016 / TT-BTC dated 1 March 2016 of the Ministry of Finance amending and supplementing some articles of the Circular No. 161/2012 / TT-BTC dated October 2, 2012 of the Ministry of Finance. The Ministry of Finance shall stipulate the regime of control and payment of State budget expenditures through the State Treasury. For regular expenditures, the State Treasury shall control the payment on the basis of contracts for procurement of goods, (for contractual expenses of VND 20 million or more).

Where a contract contains specific provisions on the designation of the purchaser to pay the goods to a third party's account and at the request of the budget-using unit (purchaser), the State Treasury shall base on contract’s regulations and documents as stipulated in the Circular 39/2016 / TT-BTC to make payment to the beneficiary.


  • By : Online Newspaper of the Government / Translator: HaiYen-Bizic


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