Registration of 11 months commercial lease and stamp duty li
P.C. Joshi
(Querist) 30 October 2009
This query is : Resolved
Dear Sir,
Pls guide on the following issue.
A Ltd has a factory in U.P.on leased factory of 11 months term and after 11 months lease is renewed.The Commissioner of Stamps issued a notice demanding registration and stamp duty.
The company is of the view that since it is 11months lease and registration of the lease is not required and no stamp duty is payable. Is the stand of the company is tenable.
On what lines the notice should be replied. Can it be mentioned in the replied that since the lease period is less than one year. hence, no registraion is required and as such, the demand of stamp duty is not justifiable.
Is the nature of lease being a commercial and being renewed after every 11 months give rise to stamp duty.
Regards,
P.c. Joshi
Raj Kumar Makkad
(Expert) 30 October 2009
becuase the term of the lease is limited to 11 months and it is renewable after that period but actual period of running the factory on lease is thus more than a year so stamp duty is rightly payable.
adv. rajeev ( rajoo )
(Expert) 31 October 2009
I think lease period in more than 11 months and renewable every 11 months. If the lease period is 11 months it was not necessary to present the lease deed before the registrar.
Adinath@Avinash Patil
(Expert) 31 October 2009
Lease deed of 11 months need not be registered.but registration is optional.
Sachin Bhatia
(Expert) 31 October 2009
For 11 months Lease deed, it is not necessary to present the lease deed before the registrar it is optional.
Vineet
(Expert) 02 November 2009
From the facts it is evident that the lease is renewable for period of 11 month. Hence it is not limited to 11 months only and therefore registration is compulsory.
Stamp duty is rightly payable in this case as the Authorities will be able to lift the veil of renewable commercial lease deed.
A.P.Manoranjan
(Expert) 04 November 2009
I AGREE WITH MR.VINEET.tHERE IS AN IMPLIED CONTRACT FLOWS BEYOND 11MONTHS ON RENEWAL AND AS SUCH STAMP DUTY IS PAYABLE.
