ad valorem
Meaning. In proportion to the value of the thing.
A tax, duty or fee is ad valorem when it is calculated as a percentage of the value of the goods, property or claim, rather than as a fixed amount. Stamp duty on a sale deed, customs duty, GST, and court fees on a suit for money are common examples.
A fixed or specific fee is the opposite: a set sum, as for many applications or petitions. In civil procedure, the valuation of a suit decides both the ad valorem court fee and the pecuniary jurisdiction of the court. In Karnataka this is governed by the Karnataka Court-fees and Suits Valuation Act, 1958.
Example
Because the plaintiff claimed Rs. 10 lakh in damages, he had to pay ad valorem court fee on that amount, not a fixed fee.
In Indian law
- Karnataka Court-fees and Suits Valuation Act, 1958
- Indian Stamp Act, 1899 (duty on conveyance by value)
See also
stamp duty · jurisdiction · suit
Read more in the study notes
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