What is Govt. Approved Property Valuer
What is govt approved ValuerActually, no one in India can claim that he is a "Government Approved Valuer". Yet, everyone desires to engage services of a "Government Approved Valuer" and therefore, to satisfy the clients, everyone who is enlisted or empanelled with various Government Departments, states that, he / she is "Government Approved Valuer"
There are three levels of governments in India i.e. Central Government, State Government and Local Self Government.
All these Government levels solicit the services of valuers for one or the other reason and many of them are maintaining a register of valuers with them for specific purpose or a panel of valuers from which a particular one can be called upon to undertake their assignments.
For instance, under the enactment of Wealth Tax Act, under Section 34 AB, a valuer can get registered (which is as good as an empanelment) with related Income tax authorities for undertaking Wealth Tax work. There are (ten) different categories of valuers possessing different qualifications as prescribed for such valuers. For a particular case under reference, such as ‘Valuation of immovable properties’ (other than agricultural lands, plantations, forests, mines and quarries) they shall have degree qualifications in followings :
Civil Engineering, Architectural, Town Planning from a recognised university.
Post Graduate degree in valuation of real estate from recognised university (Sardar Patel University at Vallabh Vidyanagar is the only institution offering such course and admits student with B.Com, B.A. and B.Sc qualifications also.)
Possess a qualifications recognised by Central Government for recruitment to superior services or Posts under Central Government in the field of Civil Engineering. Architecture or Town Planning.;
Observations and Anomalies
A Professor teaching in the college of engineering is also eligible for registration under Wealth Tax Act who has no experience or exposure to economic activity, commercial and market conditions and prevailing sentiments.
The assessment of value under Wealth Tax Act has to be done as per the rules provided under Wealth Tax Act. Earlier, it was Rule 1BB and now, as per Schedule III. These are simple arithmetical calculations which even a tenth standard literate can perform.
Although one is registered as a valuer under the Wealth Tax Act, the report of such registered valuer is not binding on the Wealth Tax Officer deciding particular tax assessment case.
Plant and Machinery valuers are also being registered under this act. However, under the definition of the assets (to be) defined by Wealth Tax Act for the assessment of Wealth Tax, plant and machinery is not a taxable wealth and therefore, it becomes a redundant provision for plant and machinery valuers to be registered under or on the panel of Wealth Tax Act. This matter has been taken up with the Ministry of Finance.
Formerly this registration of valuers for Wealth Tax purpose was with Central Board of Direct Taxes. After the year 1986 this procedure has been changed. Now, for becoming eligible to undertake valuation in Wealth Tax case, the valuer has to seek registration with the Office of the Chief Commissioner Of Income Tax of the area in which the valuer is operating.
One must understand and realise that, such registration of valuers is done only for purpose of Wealth Tax and therefore the scope of such procedure is restricted in respect of that enactment only.
Nevertheless, because institutions, organisations or individual are not properly informed on this point, the valuers who are merely registered or empanelled (under such enactment where its scope is only limited) remain free to misguide the people by claiming that they are the so-called ‘Government Approved Valuers’ under Income Tax Act also. This has created a wrong impression everywhere that, there is a separate superior category of valuers who have obtained approval of their status from Government authorities. This is totally erroneous. No one is a Government Approved Valuer.
One has to also realise that, "Indian Wealth Tax Act" is one of the minor legislation in our country. The revenue obtained is comparatively meager and the implementation of this legislation is through the officer of Income Tax Department i.e. a Income Tax Officer will act as a Wealth Tax Officer for Assessment and collection of tax under the Wealth Tax Act.
Since there is no other act or legislation whereby a valuer is accorded recognition, this above referred registration procedure is being misused and introduces ill-understood concepts in client’s minds, who may avail the services of valuers for various other purposes also.
We may note here that, Government Of India has agreed in principal to bring in legislation and enact a suitable ‘Engineers Act’. The Consulting Engineers Association Of India have made a written submission to the Hon’ble High Court at New Delhi in this regard. The matter is being pursued by Consulting Engineers Association Of India. Unlike the other professionals, like Architects, Chartered Accountants, Advocates, Company Secretaries, Cost Accountants, etc., the Engineers are not governed by any specific enactment passed by either the Parliament or by any other legislating authority.
Surveyours and loss assessor who normally work for insurance claims are another category of people who are wrongly projecting themselves as valuers recognised by department of economic affairs, as they happen to hold a licence issued under the insurance act for doing the necessary survey and estimate damages in case of claims made on insurance company.
Surveyors and loss assessors are trained to assess the ‘cost of the damage’, with a view to re-instate the assets i.e. what it costs to re-instate. A valuer on the other hand, is expected to estimate the value of any asset, keeping in mind, the benefits one would derive from the potentiality of that asset when he acquires the said asset, tangible or intangible by transfer of ownership rights.
No one, i.e. neither Income Tax Department nor the Insurance Department is conducting any examination for determining the quallification or worth of a valuer or surveyor and loss assessor except in case of the ‘Wealth Tax Act’ purpose, where valuer’s qualifications are considered only for the purpose of registration or empanelment (which, in any case, may not guarantee either an assignment for such registered valuer from Wealth Tax Authority or that particular valuers findings would be binding on Wealth Tax Authority for determination of tax amount)
Under Section 23 of the Land Acquisition Act, a valuer is expected to assess "the market value" within the limitations prescribed in the Section 23 as well as the restriction given in Section 24. So, it is pertinent for a valuer to possess the knowledge, experience and exposure of market sentiments which means, that he should have a knowledge of multiple disciplines like economics, commerce, taxation, law and engineering to be able to ascertain their impact on market value. No one can be considered to be competent to assess such market value, if he lacks the necessary knowledge in any of the above referred fields.
Sardar Patel University, Vallabh Vidyanagar, Gujarat, offers Post Graduate training Course in this profession to the graduate Candidates of any discipline but, one must bear in mind the fact, that the scope of such training is restricted.
IES’s College of Architecture in active association with Practising Valuers Association (India) and The IES’s Management College and Research have introduced a one year comprehensive autonomous Post Graduate Diploma Course in Valuation for graduates in engineering and architects. On successful completion of this course students would be awarded a P.G. Diploma and a student accredition of Practising Valuers Association (India).
Property Valuation for
- Income Tax
- Capital Gain Tax
- Wealth Tax
- Dissolution of a Partnership
- Rent and Depreciation
- Property Transfer
- Purchase, Sale, Takeovers and Mergers
- Bank Guarantees
- Projecting the Right Image
- Rupee Devaluation / Revaluation
- Advance payment against works contract
- Security with Power Supply Companies
- Duty Draw-Back and Export Incentives
- Foreign Collaboration
- Technological Know-how
- Import Duty
- Vacating Premises
- Machine Rent
- S.S.I. Registration
- Hidden Costs
- General Insurance and Insurance Cover
- Stamp Duty
- Acquisition by Government
- Liquidator’s Role
- Co-op. Society and Charitable Trusts
- Last Testaments and Wills
- Executive Perks
- Housing Loans
- Division of Assets in the Family
- Larger Public Interests
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