ANNEXURE (54) [Vide Item 2 of Schedule A] Clarification regarding cost of building for deciding reasonableness of rent under item 2 (iii) (a) of the schedule ‘A’ of the secondary code- SS CODE
ANNEXURE (54) [Vide Item 2 of Schedule A] Clarification regarding cost of building for deciding reasonableness of rent under item 2 (iii) (a) of the schedule ‘A’ of the secondary code The secondary schools code laid down the basis on which reasonable nominal rent should be paid to the managements of non-government secondary schools having their own buildings, or schools which are located in buildings belonging to the trust or managements sponsoring such institutions, rent is to be limited to 7 ½ per cent of actual cost of construction as shown in the certified accounts of the institution, plus municipal taxes, plus six per cent value actually paid for land as per documents or reasonable calculations. The code provides that the rent should not exceed 7 ½ per cent of the cost incurred as certified by the executive engineer. (2) It has, however, been noticed that in a number of cases, there is no uniformity in calculating the capital value of the building. ...