Section 4 of Himachal Pradesh Urban Rent Control Act, 1987

. Determination of standard rent- (1) The Controller shall, on application by the tenant or the landlord of a building or rented land, and after holding such enquiry as he may think fit, fix the standard rent for such a building or rented land on the basis of 10% of the aggregate cost of construction and the market price of the land comprised in the premises on the date of commencement of the construction. The standard rent so derived shall be increased by 10% from the year of construction to the present year to arrive at standard rent for the given year. However, in case of non-residential building, the standard rent shall be fixed on the basis of 15% of the aggregate cost of construction and the market price of the land comprised in the premises on the date of the construction. Explanation.— For the purpose of fixation of standard rent, the maintenance charges, municipal taxes including water and electricity charges shall be taken into account: Provided that— (i) the maintenance charges shall not exceed 5% of the standard rent; (ii) the taxes shall be as per actual tax payable on prorata basis; and (iii) the other amenities like water and electricity shall be as agreed between the landlord and the tenant. (2) The standard rent fixed under sub-section (1) shall become payable from the date on which the application is filed under this section.]