STAMP DUTY ON LEASE AGREEMENT

Querist : Anonymous (Querist) 07 October 2010 This query is : Resolved
We are entering an agreement with our landlord for leasing their land and building for rent for the period of three years with the rent of Rs.1.50 lakhs per month and paid advance of Rs.20 lakhs. Now, we need to register our agreement for the purpose of getting licence in our name from panchayat. Now, our query is

1. Whether we need to register for the purpose of getting licence from panchayat or not?
2. What is the stamp duty payable ? Is it calculated 1% for the total rent for three years plus advance or only rent?
Pl. clarify?

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R.Ramachandran (Expert) 07 October 2010
A lease agreement involving an immovable property involving a value of more than Rs. 100 is compulsorily registrable.

The value for the purposes of stamp duty is the annual rental value (and not three years value).

The stamp duty will depend upon the State in which the immovable property is situated.

Ms. Khushnuma Khan (Expert) 07 October 2010
I endorse the opinion of Ramchandranji, and it is equally important for Mr. Anonymous to clarify where the property is situated.

Best Wishes,
Khushnuma

Querist : Anonymous (Querist) 07 October 2010
Thanks Mr. Ramachandiran. This agreement is to be done at Tamil nadu.Pl. let us know the stamp duty applicable.

Amita Chaudhary (Expert) 07 October 2010
well i thinks its "Four rupees for every Rs.100 or part thereof upto Rs.1000 and twenty rupees for every Rs.500 or part thereof in excess of Rs.1000."

and the amount on which you need to calculate the stamp duty would be average rent of 3 years...