HOW TO VALUE A RELIGIOUS TRUST PROPERTY FOR AUDIT PURPOSES ?
KNOWLEDGE BANK FROM B KANAGA SABAPATHY
LET KNOWLEDGE SPREAD
Message from B. K. sir 10.03.2023
Question :
A temple trust has approached me to value an already built temple which was constructed one year back.
Their auditor has asked them for such a certificate and he wants to know the construction cost of 112 sq.m. temple.
The auditor is supposed to submit the accounts to charity commission.
Villagers have spent Rs. 50 lakhs on it. They have arranged materials & labour contractor. Engineers in the village have supervised.
Is it correct to proceed with the valuation?
Opinion :
1. The purpose of valuation in the above case is to certify the cost, i.e. the amount spent by the villagers in the construction for the temple. You can give. There is nothing wrong provided you are a registered valuer under section 34 AB of Wealth Tax Act.
2. The most appropriate method to estimate the cost of a temple is to go for detailed estimate method which can be compared with the accounting method.
3. Plinth area rate method will not be appropriate.
With best wishes,
B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com
About the Author:-
- Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
- He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
- He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
- He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
- His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
- His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
- His guru: Mr. C.H. Gopinatha Rao, Chennai.
- His mentor: Mr. R.K. Gandhi, Mumbai.
- His role model: Mr. S. Rajaratnam, Chennai.
- His best students: Thousands of valuers in the country
