21 July 2011
what is the treatment of loss due to vacancy?
In one book i have read that loss due to vacancy is deducted from amount selected from municipal valuation,fair rental value,standard rent & Actual Rent - Unrealized Rent.And the amount after deducting loss due to vacancy is GAV.
In anoter book i have read that After selecting from MV, FRV & SR compare the selected amount from (Actual rent - Unrealized rent) whichever is higher is GAV
But in case actual rent-Unrealized rent is less than Selected amount from MV,FRV & SR Due to loss due to vacancy (i.e. if there is no such loss Actual rent would have been greater) in such a case Actual rent - unrealized rent will the GAV
CAclubindia
