Rent, taxes and Insurance- SCHEDULE A [Vide Rule 89.1 (2)]- PART 2- SS CODE

 SCHEDULE A

[Vide Rule 89.1 (2)]

1.     2. Rent, taxes and Insurance-

                  (a) Rent:

(i)     Reasonable rent for the schools building provided the rent is actually paid and a certificate regarding reasonableness is obtained from the executive engineer.

 

(ii) In the case of schools accommodated in rent tenements of the Maharashtra Housing Board the rent charged by the board of such tenements should be considered as reasonable and such schools should not be required to produce in addition any certificate regarding reasonableness of rent in respect of such tenements from the concerned executive engineer (Public works and housing department) of Government.

(G.R.E.S. and S.W.D. No. GAC. 1072/11986/E of 8^th February 1972).

 

(iii) The portion of the school building not covered by the building grant (already paid) means the portion, the cost of which, is arrived at after deducting the actual amount of building grant paid by government from the total cost of the building.

 

Example: The total cost of a school building Is Rupees one lakh. It is assumed that a building grant of Rs. 20,000 was paid by government to the school for construction of the school building and the remaining amount Rs. 80,000 was collected from donations and/or their own fund and/or loans from government and/or from any other source. The portion worth Rs. 80,000 will thus be not covered by the building grant and 71 per cent of this cost (Rs. 80,000) would be admissible as rent for maintenance grant, provided the executive engineer of the area concerned certifies that the amount of rent so charged is reasonable.

 

(iii) In the case of building owned by a school, a reasonable nominal rent to be calculated on the following basis namely:

 

(a)    71 of the capital values of the building plus municipal taxes;

(b)   Six per cent of the cost of the site on which the building is constructed;

(c)    101 per cent of the cost of sanitary fittings and water supply fittings of the building.

 

Provided the executive engineer of the public works and housing department having jurisdiction certifies that the amount of rent charged is reasonable. Where site for construction of school building was granted by government to a management free of charge, that is without charging any occupancy price, the question of any rent on the cost of the site would obviously not arise.

(iv) Where a school is located in a building owned by the management and the building was built from donations, its own funds or from loans, whether from government or others and government has not paid any grant towards the cost of construction, an amount not exceeding 71 per cent of the cost incurred as is certified by the executive engineer as reasonable rent.

(v)   Expenditure on account of the rent of school building for which loan has been advanced by government according to the usual rates in that behalf during the repayment of loan and also thereafter.

(Please also see Annexure 24 and 54)

(b) Taxes:

(i) Charges on account of taxes on school building, provided these are actually paid by the managements, in respect of school buildings for which no rent is paid.

(ii) In the case of rented buildings where the certificate regarding the reasonableness of rent issued by the executive engineer does not include municipal and other taxes, the expenditure on payment of such taxes.

(iii) In Bombay city certain taxes such as 3 per cent increase in general tax, education tax and water tax in the extended areas of greater Bombay are directly recovered from the tenants. These taxes, if they are actually paid by the school, provided the rent certified by the executive engineer is exclusive of the taxes.

(c) Insurance of Buildings:

Insurance charges on account of school buildings owned by the schools and even built partly from government funds.

(d) Rent of school playground:

 A reasonable rent for the school playground provided the rent is actually paid and a certificate regarding its reasonableness is obtained from the executive engineer of the area. In the case of a playground owned by the school, reasonable nominal rent to the extent of 1 per cent of the cost (purchase price) of the playground provided the executive engineer certifies that the amount of rent so charged is reasonable.