Valuation Services

Overview:

Value is an estimate and not an actual fact. Value is an estimate of what the price ought to be. Valuation is of vital national importance as it impacts economic activities relating to property comprising land and buildings, plant and machinery and securities. It is essential for various fiscal and non-fiscal purposes such as

•Municipal Taxation
•Stamp Duty
•Income Tax
•Bank Finance
•Insurance
•Acquisitions
•Corporate Mergers
•Take Overs
•Dis-Investments / Privatization
•Liquidation
•Fixation of Rent / Royalty
•Bank Guaranty
•Arbitration &Litigation
•Transfer of Property
•Joint Ventures
•Will / Probate
•Recovery of Loan / Auction
•Solvency
•Valuation under tax laws, Income Tax, Capital Gain Tax, Wealth Tax and Gift Tax
•Visa purpose

Amol Bora & Co. is in such specialized services for more than 25 years in the field of Valuation of Land & Building and Plant & Machinery for various purposes.

The purpose of valuation is utmost importance while determining the value of property. Valuation may be required to be done for following purposes –

1.Valuation Report for Sale or Purchase of Property.

The seller or buyer of any property would like to have information on the expected value that can be derived in monetary terms from the property. This would enable the seller or buyer to make realistic decision on whether to accept or reject an offered price for the property.

2.Valuation Report for Central Government Taxation under Direct Tax Laws

Valuation of property is required by various Direct Tax Laws by Central Board of Direct Taxes, Ministry of Finance. These valuations are to be done for specific purpose on a specific date.

a.Valuation for Income Tax Purpose

It is obligatory for tax payers to declare the cost of immovable property for income tax purpose which should be supported with valuation report from Government Registered Valuers and/or Competent Valuers.

b.Valuation for Capital Gains Tax

Profits arising from transfer of capital assets are to be considered for taxation under capital gains. Such estimation of property values on specific dates with reference to cost inflation index is prepared by us for estimating capital gains tax.

c.Valuation for Wealth & Gift Tax

Consequent to the Direct Tax Laws (amendments) Act 1989, valuation rules for the purpose of wealth tax and gift tax have been changed with effect from 01.04.1989. For this purpose, guidelines given under Schedule III of the Act are to be followed.

3.Valuation for fixing Rents / Royalty

Valuation is conducted to estimate the rent / royalty that can be derived from property under valuation depending on the return on investment. Such estimation is used in various legal matters by Hon. Court.

4.Valuation for Insurance Purpose

Insurance policies are generally taken to cover accidental damages due to fire, theft, earthquake, machinery breakdown etc. The valuation of such assets is carried out on regular intervals to cover any losses.The appropriate insurance cover can be obtained by carrying valuations of all assets frequently.

5.Valuation for Mergers / Take Overs / Acquisitions

In today’s scenario many businesses joint hands for various reasons and in such cases the valuation of assets is of vital importance in deciding the stake holding in such merged enterprise.

6.Valuation for Liquidation

Due to changing business practices and technological improvements at times some organizations become non-performing as they are not able to cope with the business needs. In such cases the non-performing assets are valued through banking organizations / liquidators / insolvency professionals.

7.Valuation to avail Financial Assistance

The assets are valued to obtain financial assistance by pledging these assets as security against loan. The property may be land, buildings, machinery etc. In such cases valuation report on current market value of all the assets helps the financial organizations to provide financial assistance.

8.Valuation for Visa

Many of developed countries require proof of financial worth of visa applicants based on the assets held by either the visa applicant or by the family members. Such valuation reports are submitted to the embassies by visa applicants.