stamp duty & registration

Querist : Anonymous (Querist) 02 September 2011 This query is : Resolved
Dear Experts,
Please advise:
we have to execute 'AGREEMENT TO LEASE' AT UTTAR PRADESH FOR 5 YEARS. and completing after certain terms of 'AGREEMENT TO LEASE', we will execute 'LEASE DEED'.
MY QUESTIONS ARE:
1. WHEN REGISTRATION IS REQUIRED ?
- AT THE TIME OF 'AGREEMENT TO LEASE'
OR AT THE TIME OF 'LEASE DEED'
Thanks..

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Guest (Expert) 03 September 2011
above 11 months the lease deed to be registered. It is safe legally to register the same before starting time of lease.

R.Ramachandran (Expert) 03 September 2011
Registration is required only in the case of Execution of Lease Deed when the period of lease is for a period more than 1 year. Stamp duty is payable on the annual rental value. Registration is not required in the case of execution of mere "Agreement to Lease".

M/s. Y-not legal services (Expert) 03 September 2011
Am agree with experts. Nothing more to add..

prabhakar singh (Expert) 03 September 2011
Expert : R.Ramachandran has explained it well,which needs no further explanation of topic,an agreement to lease is like MOU and does not require any registration because no possession at then is parted or taken.

Querist : Anonymous (Querist) 03 September 2011
Thanks mr. R ramchandran
Stamp duty is payable or not at the time of 'agreement to lease'?

prabhakar singh (Expert) 03 September 2011
A lease agreement can be stamped as an ordinary agreement under article 5 of the Indian stamp act and corresponding provision of the state stamp duty act.

If an agreement of lease amounts to a demise it is required to be stamped under article 35 of the Indian stamp act which also includes a sub lease or an agreement to let and sublet. Under article 35, duty charged is on the average annual rent which is multiplied by the number of years according to the length of the lease period.