ANNEXURE-B

(See paragraphs 279 and 281)

Instructions for Calculating Rent and Preparing Rent Statements for Residential Buildings

1. Standard rent—The standard rent for residential buildings constructed or acquired at the cost of Government for the benefit of Government servants will be calculated in the manner indicated in rule 45-A—III of the Fundamental Rules.

2. Capital value—The capital value of a residential building will be determined in accordance with Fundamental Rule 45-A—II and the rules made thereunder.

3. Interest—The rate of interest to be adopted will be in accordance with the audit instructions regarding Fundamental Rule 45-A—III (b) (i).

4. Maintenance and repairs—Under this heading are included "annual repairs," "quadrennial repairs" and "special repairs" or "renewals." Annual repairs mean ordinary repairs which are done to a building annually as distinct from quadrennial repairs which are required quadrennially or at short intervals. For the purpose of rent calculations the estimate for annual and quadrennial repairs should be drawn up in the manner indicated in the sample Form III attached. This estimate should include municipal rates and taxes of the nature of house or property tax. Provision for water-tax payable to municipalities should also be made at one-twelth of the annual assessment; but it should be shown quite separately in the rent statement from the rent of the building. Special repairs will consist of renewals of floors or roofs or other items of work involving replacements, occurring at long intervals. It is necessary for this purpose to estimate the life of each class of work and calculate the sum which, set aside annually as a sinking fund, will produce the value of the work within the period of its estimated life. The following annual charges will be found to be necessary for the periods mentioned.

Life of work

Percentage of value to be set aside annually

1

2

100 years

1/10th

Per cent

80 to 70 years

1/5th

Do.

60 years

2/5th

Do.

50 ,,

2/3rd

Do.

40 ,,

1

Do.

30 ,,

2

Do.

25 ,,

Do.

20 ,,

3

Do.

5. A table is given at the end (Form 1) showing the average life of various classes of work, which the Public Works Department considers suitable for the purpose of calculating rents. The life of any class of work not included in the list should be estimated by the Head of the Department in consultation with the Divisional Engineer concerned.

6. Buildings purchased by Government or built in the past of which no record of quantities of each class of work exists, should be classed in accordance with the table given in Form II and depreciation calculated accordingly. The percentage for depreciation and renewals should be charged on the probable capital cost of the building exclusive of the cost of land and other items not subject to renewals which should be estimated by the Head of the Department on the basis of the probable expenditure which would be incurred in constructing similar building at modern rates, if in his opinion the purchase value is either below or above the true value.

7. Renewals (i.e. special repairs), which do not cause an increase in the capital value of a building, will be charged in full to repairs, and those which really represent an increase in value will, only to the extent of such increase, be chargeable to the capital cost, the balance being debitable to repairs.

8. The annual, quadrennial and special repairs taken as a whole should not exceed 2.1 per cent per annum of the capital value of the residential building and an endeavour should be made to keep them as low as possible.

NOTE—In any case where it is proposed to exceed the percentage the approval of the Chief Engineer, Public Works Department, must be obtained.

9. Rent on service installation (water-supply, sanitary, heating and electrical installations) and furniture should be calculated in accordance with the provisions of Subsidiary Rules 20-A (c) and 22-C, respectively, of the Financial Handbook, Volume II. The following illustration indicates the manner in which rent of a residence should be calculated.

I—RESIDENCE

Class I or II

A—Building—

Rs.

(a) Capital cost as previously fixed excluding cost of site— Rs. 1,325)

20,050

(b) Add—For additions after January 1,1922

1,000

Add—Cost of subsequent outlay on account of new verandah and porch

1,037

Total

22,087

Interest on Rs. 20,050 at 3½ per cent vide (a)

702 per annum.

Interest on Rs. 2,037 at 6 per cent vide (b)

122 do.

Annual repairs

337 do.

House-tax

42 do.

Quadrennial repairs

28 do.

Special repairs

58 do.

Total, A

1,284

B—Water-supply installation—

Rs.

(c) Capital value as previously fixed

525

(d) Add—For additions after January 1,1922

125

Add—Cost of subsequent outlay on account of supplying a new tap

29

Total

679

Interest on Rs. 525 at 3 ½per cent vide (c)

24 per annum.

Interest on Rs. 154 at 6 per cent vide (d)

9 do.

Annual repairs 1 per cent

7 do.

Special repairs at 3 ½per cent

24 do.

Total, B

64

C—Electric installation—

Rs.

Cost of installation and fittings

1,375

Cost of service line

275

Total

1,650

 

Rs.

Interest on Rs. 1,650 at 6 per cent

99 per annum.

Annual repairs on Rs. 1,675 at 1½ per cent

20 do.

Special repairs on Rs. 1,675 at 8½ per cent

48 do.

Total, C

167

 

Rs.

D—sanitary installation—

 

Capital cost as previously fixed

455

Add—Cost of subsequent outlay on account of minor additions

20

Total

475

Interest on Rs. 455 at 4½ per cent

20 per annum.

Interest on Rs. 20 at 6 per cent

1 do.

Annual repairs at 1 per cent

5 do.

Special repairs 8 ½ per cent

17 do.

Total, D

43

Total annual rents of A+B+C+D =Rs. 1,284+64+167+43=1,558.

 

Therefore monthly rent under Fundamental Rule 45-A—III (b) (i)—Rs. 1,558÷12

130 per mensem.

Calculations under Fundamental Rule 45-A—III (b) (ii)—

 

Capital value of A+B+C+D =Rs. 22,087+679 × 1,650+475 =24,891.

 

6 per cent on capital value

1,493 per annum.

Therefore monthly rent =Rs. 1,493÷12

124.50

Under Fundamental Rule 45-A—V(b) (i) the standard rent is the lesser of the two as calculated above and is therefore

124.50 per mensem.

NOTE—In addition water-tax at the rent of Rs. .....per mensem will be recovered from the tenant for the period during which he remains in occupation or is demand to be in occupation of the residence.

 

II—FURNITURE

 
 

Rs.

(a) Furniture purchased before June 19, 1972

1,545

(b) Furniture purchased after June 19, 1972

527

Total

2,072

(a) Interest on Rs. 1,545 at 3½ per cent

54 per annum.

Annual repairs on Rs. 1,545 at 1½ per cent

23 do.

Renewals on Rs. 1,545 at 3 per cent

46 do.

(b) Interest on Rs. 527 at 6 per cent

32 do.

Annual repairs on Rs. 527 at 3 per cent

16 do.

Renewals on Rs. 527 at 3 per cent

16 do.

Total

187

Monthly rent = Rs. 187÷12 or Rs. 16.

 

10. Provisional rent statement—A provisional rent statement must accompany an estimate for a work if in accordance with Subsidiary Rule 20-C in Financial Handbook, Volume II, the execution of the work proposed will necessitate revision of the standard rent. This should be a simple statement showing rent at 6 per cent on the expenditure chargeable to capital. The rent should be charged from the date of completion of the work pending sanction of the final rent statement by the competent authority. This procedure will also apply to the fixation of rent of a newly constructed building.

FORM I (See rule 5)

Items

Class of work

Life of the work

Percentage of value to be charged accordingly

Remarks

1

2

3

4

5

 

Masonry

Per cent

   

1

Brick work in lime

Everlasting

 

For purpose of calculating rents.

2

Brick work in clay

100 years

1/10th

3

Boulder masonry in lime

Everlasting

   

4

Coursed rubble in lime mortar

Do.

   

5

Coursed rubble in mud

100 years

1/10th

 

6

Cut-stone work, rough

Everlasting

   

7

Cut-stone work, fine

Do.

   

8

Brick-arches in lime mortar

100 years

1/10th

 

9

Rubble arches in lime mortar

100 years

Do.

 

10

Sundried bricks in clay

75 years

1/5th

 
 

Flooring

     

11

Brick-on-edge or flat brick flooring

40 years

1

In rooms

 

Brick-on-edge on 7.5 cm. concrete

20 years

3

In passage where there is heavy wear.

12

Granolithic concrete floor, stone aggregate, concrete and a sand matrix

50 years

2/3rds.

 

13

Stone flooring on 7.5 cm. concrete

50 years

Do.

 

14

Terraced floor of lime concrete

20 years

3

 

15

Salwood work in roofs

60 years

2/5th

 

16

Husna work in roofs

40 years

1

 

17

Country work in roofs

15 years

4

 

18

Allahabad or lock-tiling

25 years

2 1/2

 

19

Iron scantlings in roofs

80 years

1/5th

 

20

Jack-arched roofing finished off with concrete terracing

75 years

Do.

 

21

Terraced roofing or stone flags

Do.

Do.

 

22

Reinforced concrete roofing

Do.

Do.

 
 

Roofing

 

Per cent

 

23

Naini Tal pattern roofing of 22 B.W.G. sheet iron

50 years

2/3rd

 

24

Sal ballies in C.I. roofs

20 years

3

 
 

Ceiling

     

25

Expanded metal ceiling

50 years

2/3rd

 

26

Pinewood ceiling

30 years

2

 
 

Miscellaneous

     

27

Teakwood doors and windows

40 years

1

 

28

Salwood doors and windows

Do.

1

 

29

Country wood doors and windows

30 years

2

 

30

Stone sunshades and other similar stone work

100 years

1/10th

 

31

Wrought iron work

80 years

1/5th

 

32

Rolled steel joists

75 years

Do.

If protected

FORM II (See rule 6)

Class

A

B

C

D

E

Percentage of capital cost to be charged for depreciation and renewals

0.4 per cent

0.5 per cent

0.6 per cent

0.7 per cent

0.8 per cent

1

2

3

4

5

6

Foundations and plinth

Pakka

Pakka and kachcha-pakka.

Kachcha-pakka

Kachcha-pakka

Kachcha-pakka or no founds.

Superstructure

Pakka and kachcha-pakka.

Pakka, kachcha-pakka and kachcha in protected walls.

Kachcha-pakka and kachcha in protected walls

Kachcha-pakka and kachcha in any position protected or otherwise.

 

Roofs

(1) Jack-arched on rolled steel joists.

(1) Allahabad or lock tiles on inferior wooden framework.

As in A class

As in B class—also country tiled and thatched roofs on good timber scantlings.

Country tiled and thatched roofs and indifferent support.

 

(2) Allahabad or lock tiles on iron or sal frame work.

(2) Hill pattern and corrugated iron roofs or iron or wood.

     
 

(3) Terraced roofs on iron and salwood beams.

       
 

(4) Reinforced concrete roofs.

       

(a) Floors

(1) Stone-flagged

(1) Terraced, lime concrete.

As in A Class

As in B Class

As in B Class

 

(2) Brick-on-edge

(2) Wooden floors

     
 

(3) Tiled floors

       
 

(4) Granolithic cement concrete.

       

Doors and windows

Teak and sal wood

Doors of sal or other wood than teak.

Ditto

Ditto

Country wood and wood other than sal and teak.

Ceiling

X.P. metal

Wooden

Ditto

Ditto

 

NOTES—(W) The above specifications show in general terms the class in which a building should be placed for purpose of assessing rents. It cannot of course be expected that buildings will be found to fit any of these specifications in every respect, and the classification of each building must be settled by the head of the department in consultation with the Superintending Engineer concerned.

(X) Classes A and B will be found suitable for buildings recently erected by the Public Works Department and Classes C and D will generally be suitable for old buildings which have been erected by Government in the past or purchased. Few if any main buildings of residential quarters will come into class E, which will mostly be reserved for outhouses.

(Y) In classifying buildings the general principle should be observed that all items should be excluded from consideration which are renewed in whole or parts at intervals of four years or less, e.g. an outhouse has the following specification : Pakka founds, kachcha-pakka walls, kachcha floors, sal-battened doors, country tiled roofs on jafri over good sal supports—this building would be classed as A or B as the kachcha floors and country tiles in jafri work are kept in repairs annually.

(Z) In the case of terraced roofs on sal beams, such as are found in old buildings, it is to be observed that if the cost of replacing this style of roof were worked out, it would come to more than that of the jac-arched by which it would now-a-days be replaced. Therefore although not in reality so permanent a form of roof, such a roof may be reckoned as of equal permanence to jack-arched roof for purposes of classifying a building.

FORM III (See rule 4)

Rent statement for Secretaries’ quarters Bungalow no.

Sl. no.

Sub-head of works

Rate

Unit

Standard quantities

Total

Cost of repairs

Main building

Out houses

Cook houses

Stable and coach houses

Latrine

Road

Annual

Quadrennial

Quantity

Cost

Quantity

Cost

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

1

Scarping walls

2

White washing (one coat)

3

Distempering

4

Painting and varnishing

5

Coaltarring

6

Cleaning and oiling

7

Repairs to terraced roofs

8

Repairs to tiled roofs

9

Repairing latrines

10

Renewal of road metal

11

Repairing and easing doors

12

Lime plaster

13

Lime pointing

14

Repairing fence

15

Unforeseen

16

Taxes

Total

Total, annual repairs

All the taxes will be paid by Government but water-tax will be recovered from the tenants monthly at one-twelfth of the annual assessment for the period during which he remains in occupation or is deemed to be in occupation of the residence.

Special charges (renewals)

Life in years

Percentage

Capital value

Amount

1

2

3

4

5

     

Rs.

Rs.

1. Brick work in clay

100

1/10

2,085

2

2. Brick arches in lime

100

1/10

408

1

         

3. Brick-on-edge of flat brick floor

40

1/10

522

5

4. Jack-arched roof

75

1/5

1,413

3

5. Allahabad-tiled roof

25

491

13

6. Salwood work in roofs

60

2/5

1,352

5

7. Salwood work in doors and windows

40

1/10

568

6

8. Sal battened doors

40

1/10

163

2

9. Teakwood doors and windows

40

1/10

1,307

13

10. Rolled steel joints

75

1/5

1,788

4

11. W.I. work

80

1/6

333

1

12. Gates

40

1/10

250

3

Total

     

58

 

 

Rs.

Capital value—Rs. 22,087

 

Interest on Rs. 22,087 at 3½ per cent

773

Annual repairs

385

Quadrennial repairs

28

Special repairs

58

Total

1,244

Therefore monthly rent—Rs. 1,244–12—Rs. 104.

Calculations in accordance with Fundamental Rule 45-A-III(B)(ii)—

Capital value—Rs. 22,087.

Six per cent on Rs. 22,087—Rs. 110.50.

Therefore monthly standard rent is Rs. 104.

NOTE—In addition water-tax at the rate of Rs. per mensem will be recovered from the tenant for the period during which he remains in occupation or is deemed to be in occupation of the residence.

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