For the purpose of the assessment of licence fee, the capital cost of a residence owned by Government shall include the cost or value of sanitary, water-supply and electric installations and fittings and [the cost of land and expenses on its development] and shall be either :—
[G.O.Ms.No. 154, Fin. & Plg. (FW : FR.I) Dept., Dt. 1-7-1981]
(a) the cost of acquiring or constructing the residence and any capital expenditure incurred after acquisition or construction; or, when this is not known,
(b) the present value of the residence.
Note :—The cost of restoration or special repairs shall not be added to capital cost or present value, unless such restoration or repairs add to accommodation or involve replacement of the existing type of work by work of a more expensive character.
Illustration :—The cost of replacing palmyrah rafters by Karimarudu or bamboo hurdling by teakwood reapers, or lime plastering by cement plastering should not be added to the capital cost of a building. The cost of deepening a well in order to restore the normal water supply should not be added to the capital cost of a building. But the cost of replacing country tiles by Mangalore tiles, or a mud compound wall by a wall of brick in mortar plastered with cement, or a cement floor by tiles should be dealt with in accordance with clauses (a) and (b) of paragraph 93 of the Andhra Pradesh Public Works Department Code.
Provided that—
(i) [The State Government] may make rules providing the manner in which present value of residences shall be determined.
(ii) [The State Government] may make rules determining what expenditure is to be regarded, for purpose of sub-clause (a) above, as expenditure upon the preparation of a site.
[Subs. by G.O.Ms.No. 12, Fin. & Plg. (FW : FR-I) Dept., Dt. 7-2-95]
[ Explanation :—Where the amount spent on preparation of the site in the case of old residences is not available it may be taken as ten percent of the capital cost of the structure, if such residences are double storeyed and twenty percent of the cost of the structure if the residences are single storyed].
[G.O.Ms.No. 201, Fin. & Plg., Dept., Dt. 13-8-81, w.e.f. 1-7-1981]