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When
a valuer accepts an assignment for which the quantum of his
fees remains contingent upon:
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1.
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The
amount of award granted by Courts to valuer’s client
in a litigation for which the valuer worked or
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2.
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Reduction
in taxation likely to be obtained by clients through valuer’s
work or
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Sale
value realised for assets sold or.
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Amount
of financial loan / aid / subsidy to be obtained by valuer’s
clients for which valuation exercise has been ordered or
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Arriving
at values, suggested/requested/opined by his clients (values
which are suitable, convenient to some)
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Then,
anyone is within his logical rights to suppose that the integrity
of such professional is not what it should be !
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N.B.
Worldwide it is considered unethical and unprofessional for
a valuer to accept fees in a form of a commission, rebate,
brokerage or similar such norms.
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However,
if any law has provided for any such scales of fees which
may be linked to asset values, in the form of percentage or
if the well informed client has specifically asked for the
professional fees to be quoted in the form of a percentage
of assets values, then the valuer will have to be guided by
those principles only.
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guidelines by which valuers are paid their fees under the Wealth
Tax Rules, 1957 (8C) are recorded hereunder for the information
of the reader : |
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8C
(1) Subject to the provisions of sub-rules (2) and (3), the
fees to be charged by a registered valuer for valuation of
any asset shall not exceed the amount calculated at the following
rates, namely :-
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On
the first 50,000 of the asset as value 1/2 per cent of the value; |
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On
the next 1 lakh of the asset as value 1/4 per cent of the value; |
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On
the balance of the asset as value 1/8 per cent of the value. |
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2.
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Where
two or more assets are required to be valued by a registered
valuer at the instance of an assessee, all such assets shall
be deemed to constitute a single asset for the purposes of
calculating the fees payable to such registered valuer.
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Where
the amount of fees calculated in accordance with sub-rules
(1) and (2) is less than Rs. 50/-, the registered valuer may
charge Rs. 50/- as his fees.
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Note:
These are scales of fees prescribed for Wealth Tax assessment
only and in no case these can form a basis for other professional
assignments undertaken by experienced, expert valuers. Therefore,
it is desirable / suggested that, fees should be linked with
the total man days invested for doing the site inspection,
research work and analysis, for arriving at assessed values.
Moreover, it is always desirable to fix the schedule of fees
well in advance and as a lump-sum fee for a specially described
assignment and avoid ambiguities before the completion of
assignment.
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Today’s
fees
Today
the question of valuer’s fee remains largely a matter
between the valuer and his clients. The kind of service
the valuer officers, the quality of his work, the amount
of trust and confidence a valuer and the overall reputation
which a professional valuer has been able to establish for
himself in the field; these and the particular client’s
needs, clients’ perception of valuer’s work etc.
decide the quantum of a fee a valuer is able to earn. As
regards the question ‘who pays’? The answer is
simple. Whoever engages the services of a valuer, has to
pay his fees as agreed.
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