7. Standard Rent.-
(1) “Standard rent” , in relation to any premises, means the rent calculated on the basis of ten per cent, per annum of the aggregate amount of the cost of construction and the market price of the land comprised in the premises on the date of commencement of the construction.
Provided that the standard rent calculated as aforesaid shall be enhanced in the manner provided in Schedule 1.
(2) For the purpose of this section, –
(a) Cost of construction shall include of electrical fittings, water pumps, overhead water tanks, storage tank and other water, sewerage and other fixtures and fittings affixed in the premises,
(b) In case any fixtures and fittings referred to in clause (a) are in common use by more than one occupation in an building, such proportion of cost of the fixtures and fittings shall be included in the cost of construction of the premises as bears the proportion to the plinth area of such premises to the plinth area of that building
(c) The cost of construction shall be the actual amount spent on construction , and in a case where such amount cannot be ascertained, such cost shall be determined as per the scheduled rates of the Central Public Works Department for cost of construction for similar construction for the year in which the premises was constructed.
(d) The market price of the land shall be the price for which the land was bought as determined from the deed of sale registered under the Registration Act, 1908 (16 of 1908), if construction commenced in the year of registration or the land rates notified by a local authority for the year in which construction was commenced, whichever is higher.
(e) The land comprised in the premises shall be the plinth area of the building and such of the vacant land up to fifty pre cent of the plinth area as in appurtenant thereto.
(f) In a case where a premises forms part of a building having more than one premises, such proportion of price of land forming part of such building shall be taken to be the market price of the land comprised in the premises as is equal to the proportion of the plinth area of such premises to the plinth area of that building
(g) Notwithstanding anything contained in clause (c) and (d), the cost of construction and the market price of the land comprised in the premises purchased from or allotted by the Government or a local authority shall be the aggregate amount payable to such Government or the local authority for the premises :
Provided that the Rent Authority may, for the purpose of arriving at, the cost of construction and the market price of the land comprised in the premises, allow addition, subject to a maximum of thirty per cent, of amount payable to the Government or the local authority, to the amount so payable for any expenditure incurred by the landlord or by the first or any subsequent purchaser or allottee for any improvement, addition or structural alteration in the premises.