CPWD Cost Index (1955 to 2019) & Income-tax Valuation

[amibrahim]

Latest Posting: September 10,2019: CPWD PAR 2019, Proforma for calculation of C.I, Cost Index 1955 to 2019 for Delhi/NCR: Volume-4. Page 1. 2.

Cost Index on January and April 2018 over DPAR 2012: (These Indexes are without considering GST in the market rate of Building  Materials.

effective from January 2018). Volume-3, Page: 9. Pl See CPWD notification (ut-infra)<<<

  .

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 CPWD COST INDEX (From 1955 to Recent)

http://cpwd.gov.in/sys_update/cost_index_cir.aspx

Disclaimer: Utmost care is taken while compiling these data in Volume 1,2 & 3,

which can be counterchecked with the actual indices published by CPWD.

Any variance/mistake arising out of adopting these data,

the author/publisher is not liable/responsible for the consequences /damages.

The goods and service tax rates for building materials are as follows:

GST rates for building materials | Construction materials GST rates 2017

 

[amibrahim]

 Scale of Amenities – Architectural- Main Unit: Annexure 2:

House Category

Living Room

Drawing Room

Office

Family Lounge

Dining

Bed Room

Kitchen

Store Room

Utility Balcony

Toilet

Bath

WC

Type I

One

-

-

-

-

One

One

-

One

One

-

One

II

One

-

-

-

-

Two

One

-

One

One

-

One

III

One

-

-

-

-

Two

One

-

One

Two

-

One

IV

One

-

-

-

One

Three

One

-

One

Three

-

-

IV Special

One

-

-

-

One

Three

One

-

One

Three

-

-

V

-

[amibrahim]

 

House Category

Living Room

Drawing Room

Office

Family Lounge

Dining

Bed Room

Kitchen

Store Room

Utility Balcony

Toilet

Bath

WC

V

-

One

-

-

One

Three

One

One

One

Three

-

-

VI

-

One

-

-

One

Four

One

One

One

Four

-

-

VII

-

One

One

One

One

Four

One

One

One

Four

-

-

VIII

-

One

One

One

One

Four

One

One

One

Four

-

-

Servant Qrtr

-

-

-

-

-

One

Kitchenette

-

One

One

-

 

For further details like general conditions for calculation of plinth areas, etc. can be consulted in ^ http://www.cpwd.gov.in/Publication/GPRAPlintAreaRevisedNorms.pdf

Fresh Plinth Area Rates (PAR)  with reference to  base 100 as on 1/10/2012 has been issued vide No. 62/SE/(TAS)/Plinth Area Rates/399 Dated 24/12/2012, taking into account for price rises as well as the latest development in construction practice such as fire safety measures for high rise buildings and green building concepts etc. which can be viewed in  ^  http://www.cpwd.gov.in/newsitem/latestnewspdf/PAR2012.pdf

[amibrahim]

 Available history of CPWD Plinth Area Cost Indices for Delhi (CIVIL WORKS)

Date	CPWD Cost Indices	Revised  Year / Index
1 – 1 – 1970 with reference to Base Year 17/5/1955	181	1/ 1/ 1970 = 100
1 / 10 / 1976	180	Base Year 1/10/1976 as base 100
31/12/1991	664	1/1/1992 as base 100
1/10/2007	260	1/10/2007 as base 100
1/4/2008	114
1/10/2008	119
1/4/2009	113
1/10/2009	126
1/4/2010	136
1/10/2010	139
1/4/2011	149
1/10/2011	151
1/4/2012	161
1/10/2012	170	1/10/2012 as base 100
1/4/2013	100	CSQ /68/SE(TAS) CI/2013-14/240E dt 27/6/2013

 Source: Indian Valuer Journal Volume XLIV, May 2012 PP 627 upto1/10/2011 and ^ http://cpwd.gov.in/sys_update/cost_index_cir.aspx

[amibrahim]

Valuation for cost of construction for Income-tax: If invested in construction by an assessee, the assesse is expected to maintain a proper books of accounts with supporting vouchers and proper accounts for labor and materials, etc. in order to assess the investment invested by him, by the income-tax officer (hereinafter called the assessing officer / AO). The asessee can obtain a Valuation Report suo-moto from a Registered Valuer to substantiate his claim. If the A.O is not satisfied with books of accounts and valuation report and concluded that the investment is higher than declared by the assessee / Valuation Report, the A. O can refer to Valuation Officer (V. O) of Income-tax department for V.O’s opinion u/s 142 A of the Income-tax Act 1961 (The Act). Under this section reference is made for estimating value of investment in purchase of immovable properties as well as in construction of buildings including remodeling, extension, improvement etc .If upheld, the assesse is charged u/s 69 A, 69 B of the Act for unexplained investment. The onus probandi is rest with the department. The difference between declared and estimated (V. O’s) is taxed at the higher rate of tax in addition to penal rate of interest and other penalties. Therefore, stakes are high... In a situation where the A. O. did not reject the books of accounts and did not accept the valuer’s report, the case is referred u/s 142 A, still, there is relief, the assesse can go for appeals and the registered valuer can represent the assesse in the department as well in appeals. Under some circumstances with such conditions, the V. O is empowered to assume the power of a civil judge in a civil suit petition.

The approved methods are a) Accounts Method b) Plinth Area and Cost Index Method c) Detailed Estimate Basis d) Materials and Labor Contract Method and e) Comparable Sales Method applies to Flats, Shops, Offices in Apartments and hi-rise buildings.

Registered Valuer can estimate the probable cost of construction by Plinth Area Method (PAR) or Detailed Estimate Basis. Standard rates (PAR or DSR) of CPWD or State PWD can be applied. Valuer is expected to submit her/his report as prescribed in Form O-I of Valuation Report (See rule 8D) with proper working of net plinth area rate and where necessary detailed analysis of rates can be supported. The valuer is bound to explain ratio decidendi (The rational for a decision) failing which the report can be ignored by bringing in departmental valuation report.

A hypothetical summary of expenditure:

A G+1 Private residential building in Chennai was constructed during April 2008 to March 2010. The Assessee’s expenditure year wise as shown by him with the support of valuation report is as under:                           

 

The summary of accounts by the assesse/Valuer:

Period of construction	Expenditure By assesse/Valuer’s Report             INR	Average CI for the period on base of 01/10/2007	Amount reduced to base 100 of 01/10/2007	% of progress of the work
1	2	3	4 = 2 / 3	5
01/04/2008 to 31/3/2009	14,50,000	125	11,60,000	42.65
01/04/2009 to 03/2010	19,50,000	120	16,25,000	57.35
Expenditure	34,00,000 Say “P”		27,85,000
Weighted Cost Index (WCI) = 34,00,000 x 100 / 27,85,000 = 122

                                                     

Total Cost invested in construction as per A. O’s estimate:                INR      40,00,000

Less for self-supervision and procuring materials directly @ 7^1/2% (-)             3,00,000

Net Investment:        Say “A”                                                                                   37,00,000

Add for Architect’s fees @ 5% of “A”        (+) Say “B”                                           1,85,000

Total Investment: “A”+”B”    Say “C”                                                                       38,85,000

Add for Dump-waiter lift (As per Actual) Say “D”                                                  5,50,000

Total Fair Cost of construction C + D                                                               44,35,000

Year-wise break-up of estimated cost of construction; Total Cost of Construction / WCI = 38,85,000 / 122 = 31,84,426

 

Period of construction	Expenditure INR	Average CI for the period on base of 01/10/2007	Physical progress	Assessed Fair Cost of Construction
1	2	3		5 C/P x 2
04/2008 to 03/2009	14,50,000	125	42.65	16,56,838
04/2009 to 03/2010	19,50,000	120	57.35	22,28,162
Expenditure	34,00,000 (P)			Lift      5,50,000 Total 44,35,000
	38,85,000 (C)
This does not include the cost of land

 The assesse is entitled for a discount @ 7^1/2% if materials are procured directly and work is done under the self-supervision of the owner/spouse. No discount is allowed for work done through a contractor. If work is done by a contractor and bulk materials are supplied by the owner, a discount of 7^1/2% to those bulk materials is available. For direct purchase of materials but labor contractors are engaged for carrying out works, a discount of 5% is allowed. If State PWD rate is relied upon, the discount depends on th

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Last edited by amibrahim on Sun Oct 02, 2016 10:15 am; edited 6 times in total

[amibrahim]

 Please find attached 1) CBDT Valuation Format Form O-1, Central Public Works Department P. A. R  1992, 1/10/2007 and  PAR 1/10/ 2012

2) Supplement PAR to PAR-1/10/2012 for Specialised E, M,& HVAC works with base 100 as 1/4/2013

A. M. Ibrahim

[amibrahim]

DSR 2013, CPWD Cost Index Calculation Table 2013, D.A.R 2012 Volume II and I

A. M. Ibrahim

[amibrahim]

  

Method of conversion of CPWD Cost Indices (Delhi) for Civil Works from one Base to another Base from 1955 to 2012.

Fresh Plinth Area Rates with base 100 as on 1/10/2012 (For Residential and Non-Residential Buildings. Services and Development) has been issued by CPWD. (Fresh PARs and Preformat for calculating cost index  for future cost index with base 100 as on 1/10/2012 in "Excel" are attached above). The Delhi cost index from 1/10/2007 to October 2012 is freeszed at 170. Delhi cost index as on 1/4/2013 is again fixed at 100. CPWD Plinth Area Rates are applied for valuation for Land and Building Method, by applying Plinth Area Method and also for assessing probable cost incurred in the construction for income-tax purposes, etc.

To assess the Fair Market Value of a property as on March 2014, cost index of a place (Non-Delhi) is arrived by applying current materials and labour cost in the below "Excel" Proforma such as prices for Bricks, Cement (OPC), Steel, Sand, Flooring items, Paints, Plywood & commercial wood, Pipes, Lamps & Fans, Electrical Machinery, Wires and Cables and Labour and thus cost index and revised weightage as on March, 2014 is arrived by comparing with known Delhi Rates as on 1/10/2012. Assuming the cost index as on 1/3/2014 is 1.45, the Basic Plinth area rate is multiplied with the cost cost index 1.45 and that result is Plinth Area Rate as on March 2014 in that Place say Mumbai.

 Delhi Basic Plinth Area Rates as on 1/10/2012: Source: ^  http://www.cpwd.gov.in/newsitem/latestnewspdf/PAR2012.pdf

 

Sl. No	Description	Office/College/Hospital (OCH)	School (S)	Hostel (H)	Residential ( R )	Remark
1.0 A	RCC Framed Structure (Specification-Annexure-II	Rates INR  per  sqm				Specification as per Annexue-II
1.1.1(A)	Up to six (06) Storeys, Floor ht 3.35 m	23,500	17,000
1.1.2 (A)	Floor ht (height) 2.90 m			16,500	16,000
1.1.(B)	Floor ht (height) 3.35 m	19,000	15,200			Specification as per Annexure- V
1.1.2( B)	Floor ht (height) 2.90 m			15,000	14,500

 

[amibrahim]

 

Sl. No 2	Load Bearing Construction	Office/College/Hospital	School	Hostel	Residential -Type I, II & Servant Qtr	R-Type IV Qtrs	R-type-V, VI and above
2.1.1	Floor height 3.35 mSingle Storey	15,000	14,000
2.1.2	Double Storeyed	14,300	12,200
2.13	Three Storeyed	15,000	14,000
2.1.4	Four Storeyed	16,000	14,000
2.2.1	Floor height 2.90 mSingle Storey			13,300	11,600	12,800	14,000
2.2.2	Double Storeyed			11,700	11,300	12,400	13,100
2.2.3	Three Storeyed			13,300	11,600	12,800	13,400
2.2.4	Four Storeyed			14,000	12,200	13,500	14,300
2.3	Scooter & Cycle Sheds				10,500	10,500	10,500
2.4	Last edited by amibrahim on Fri Mar 07, 2014 1:00 pm; edited 1 time in total

[amibrahim]

 Method of conversion of CPWD Cost Indices (Delhi) for Civil Works from one Base to another Base from 1955 to 2012.(***).

 

Year	Index	Base Year	Index on Date
1955	100		100	CI on 1/10/2012 Based on Base 1955
1/1/1970	100		181		CI on 1/10/2012 Based on Base 1/1/70
1/10/1976	100		180			CI on 1/10/2012 Based on Base 1/10/76
1/1/1992	100		664				CI on 1/10/2012 Based on Base 1/1/92
1/10/2007	100		260					CI on 1/10/2012 Based on Base 1/10/2007
1/10/2012	100		170	9561.84	5282.78	2934.88	442.00	170.00

 Example:

a). Cost Index on 1/10/2012 based on  base year of 1955: 181/100 x 180/100 x 664/100 x260/100 x 170/100 x 100 = 9561.84.

b) Delhi Cost Index on 2002 is 166 and on 1/4/2007 is 254.22; Percentage above Delhi Schedule of Rates: 254 – 166 /166 x 100 = (+) 53.01% above 2002 Index.

CPWD Plinth Area Cost Indices for Delhi Civil Works: (+++)

Date	Base Station	Base Index	Index as on  date
1/10/2012	Delhi	100	100.00
1/4/2013	Delhi		100.00
1/10/2013	Delhi		N/A
1/4/2014	Delhi		N/A
1/10/2014	Delhi		N/A
1/4/2015	Delhi		N/A

 

Source: (***) Indian Valuer Journal, May 2012 PP 627 and ^ http://cpwd.gov.in/sys_update/cost_index_cir.aspx

 (+++): Added on 7/3/2014

 

[amibrahim]

[quote="amibrahim"]

FRESH CPWD Civil works Cost Index Calculation Sheet;

Fresh Delhi based Plinth Area Rates (PAR) with reference to base 100 as on 1/10/2012 vide ^  http://www.cpwd.gov.in/newsitem/latestnewspdf/PAR2012.pdf, and Special supplement Rate to PAR 2012 for electromechanical (E&M) and HVAC works as base 100 as on 1/4/2013 have been issued taking into account for price rises as well as the latest development in construction practice such as fire safety measures for high rise buildings and green building concepts etc. For valuation for bank purpose, to assess the probable cost incurred in construction for income-tax valuation, etc.  These .Fresh Delhi CWD PAR is widely used by valuers.

To change from Delhi 2012 base to future date in any place in India, the enclosed calculation sheet can be used to arrive at future cost index. That calculation sheet has thirteen elements with Delhi local prices on 2012 and their weightage in that index. They are Bricks/1000= 3867/8.00, Cement/Q= 587/14.50, Steel/Q= 4669/19.50, aggregate/M³= 1350/6.50, sand/M³= 1293/3.00, flooring items/M² 467/3.00, paints/litre= 151/3.00, wood/M² 1476/5.00, pipes/m 300/2.50, lamps/each= 1024/3.50, electrical machinery/each= 30380/2.50, wires and cables/100m= 1790/4.00 and labour/each 309/25.00 and sum of all constituents weightage is 100. The weightage is prefixed as well as the prices. For a future date material and labor prices for any place is obtained and cost index is arrived thus: Example: Future date Steel rate is 4,700, that rate multiplied by weightage 19.50 is 91,650 divided by earlier rate 4,669 is 19.63, which is weighted cost index on future date 1/4/2013. Sum of all thirteen items Bricks to Labor is 99.54 (From Table, Sum of D2 to D 114); That W.C.I of steel of 19.63 x 100 divided by new cost index (99.54) is new weightage factor for steel which is 19.63 x 100 / 99.54 = 19.72 is future date weightage factor for steel, thus sum of all future weightage factors (Thirteen elements) will be equal to 100.

Fresh Electro Mechanical (E & M) services rates with base 100 as on 1/4/2013 is issued inter alia for Substation Equipment’s @ INR 7,000 / KVA, Diesel Generator Set @ INR 10,000 / KVA, Energy Efficient Central A.C.Plant and stand by Chilling units system(High side) @ INR 75,000 / TR & 45,000 / TR respectively, Solar Photo Voltaic Power Generation System @ INR 125000/- per KWp, CCTV SYSTEM @ INR 300/- per sq. meter, Building Management System (BMS): Supplying, installation, testing and commissioning of Building management system etc. cabling, recording, display system and hardware and software support. Built up area up to 10000 sqm INR.30 lacs and  Add extra for built up area beyond 10000 sqm @ INR 100/- per sqm. (For Details: ^ http://cpwd.gov.in/Publication/DSR2012Supplement.pdf).

 

Future Cost Index is 99.54, Say 100, no change, therefore basic 2012 Delhi PAR x NCI of 100/100 i.e. Basic Rate for a given specification is INR 16,000, New CI on new date is 16,000 x 100/100 = INR 16,000 per sqm.

CPWD is publishing future date cost index for Delhi and other states which can be viewed in ^ http://cpwd.gov.in/sys_update/cost_index_cir.aspx

A. M. IBRAHIM

 

 

Enclosed is Cost Index Calculation Table in word and Excel formats.

[/quote]

[amibrahim]

Source: http://www.cpwd.gov.in/cpwdnew/SearchResult.aspx?Find=cost%20index     Ref: misII, Order Date: 4/9/2015, Authority: Shri. Krishna Murari Soni. CE_WZ-I

CPWD COST INDEX :

BIHAR & Nepal; CE- WZ II. Base Year: 1976,1992, 2007 and 2012.

Maharashstra: WZ- II. Base Year 1976 and 1992.

Gujarat: Chief Engineer, WZ - I; Base Year 1976 and 1992

West Bengal; CE, East Zone - I; Base Year: 1976 and 1992

HARYANA; CE, NZ - I; Haryana, Himachal Pradesh, J & K; Base Year: 1976 and 1992

UP & Uttaranchal: CE - NZ - II; Base Year: 1976 and 1992

[amibrahim]

 Karnataka Region: Belgaum CPWD Building Cost Index w.r.t  Delhi PAR 1/10/2012 (As Base 100):

 

Belgaum as on 1/10/2013 : 119

[amibrahim]

 CPWD BUILDING COST INDEX-Telunkana REGION

[amibrahim]