LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

shraddha Shukla (Practicing Company secretary " Corporate Law Consultant")     18 February 2011

leagal validity of an agreement on non judicial stamp paper

what is the legal validity of an aggrement of rent on non judicial stamp paper. do we need to get it notarized? if yes why notarization is needed.



Learning

 7 Replies

pramod yadav (Assistant Company Secretary)     18 February 2011

The Provisional Registration Certificate is valid for a period of 5 years from the date of issue. As soon as the unit commences commercial production, the provisional registration certificate loses its validity.

P.K.Haridasan (Advocate)     19 February 2011

Transfer of property act says that any transfer of  right on a immovable property is  having more value than Rs.100/-, it has to be registered. This is called lease deed. If it only an agreement to lease for a period less than twelve months, based on Contract Act,  it need not be registered. Notorisation is not necessary  but we do so, to prove it   being executed for evidence purpose.  

 

 

 

Amit Pateria (Advocate & Consultant (Law) Supreme Court of India New Delhi)     21 February 2011

Dear Ms. Shukla,

The validity and legality of an Agreement of Rent depends entirely on the nature of the property being rented i.e. movable or immovable. For example if a movable property - like a car - is being rented then it is not important to have the agreement of rent made on a judicial stamp paper however is any immovable property is being rented then it is mandatory to use the judicial stamp paper for the preparation of a Lease Deed.

A lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity.

There are various implications of entering into a lease agreement. Here is a list of implications for you:

  • You have to pay the stamp duty.
  • The lease agreement has to be registered.
  • You have to pay the additional municipal taxes.
  • You have to pay income tax on any income derived from sub letting the lease property.

where the lease purports to be for a term not exceeding one year in case of residential property the Stamp Duty would be Fifty paise for every one hundred rupees or part thereof on the total amount or value of, the average annual rent,  premium fine and money advanced. Subject to a maximum of rupees five hundred.

1 Like

Anupam Srivastava (Advocate)     22 February 2011

You should  also check the Stamp duty prevailing in your state.

shraddha Shukla (Practicing Company secretary " Corporate Law Consultant")     03 May 2011

Originally posted by :Amit Pateria
"

Normal
0


false
false
false







MicrosoftInternetExplorer4






/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}



Dear Ms. Shukla,

The validity and legality of an Agreement of Rent depends entirely on the nature of the property being rented i.e. movable or immovable. For example if a movable property - like a car - is being rented then it is not important to have the agreement of rent made on a judicial stamp paper however is any immovable property is being rented then it is mandatory to use the judicial stamp paper for the preparation of a Lease Deed.

A lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity.

There are various implications of entering into a lease agreement. Here is a list of implications for you:


You have to pay the stamp duty.

The lease agreement has to be registered.

You have to pay the additional municipal taxes.

You have to pay income tax on any income derived from sub letting the lease property.


where the lease purports to be for a term not exceeding one year in case of residential property the Stamp Duty would be Fifty paise for every one hundred rupees or part thereof on the total amount or value of, the average annual rent,  premium fine and money advanced. Subject to a maximum of rupees five hundred.
"

Dear amit ji,

my company is continuously entering into lease agreements in huge number. The lease deed is for more than 3 years or so, none of them are notarized and registered, also the they are executed on rs. 50/100 stamp paer. 

Kindly confirm

1.       do we need to get them notarized? If yes the relevant provision/ section

2.       do we need to get it registered? If yes the relevant provision/ section

wh    What are the consequences if we dont get it registered?

3.       do we need to get them executed it on a higher stamp paper or pay stmp duty?  as I read that, on agreement to lease and lease deed: Leases for more than one year attract a stamp duty of 5% on the average annual rent and 14.5% on the deposit. This duty can be reduced by showing some of the amounts in a separate amenities agreement which need not be registered. Agreements to lease and lease deeds for less than one year also require the same stamp duty as above but as they do not require registration, they never get properly stamped. 

Its urgent kindly confirm. Thanks in advance.


 

Nellore Vijaya kumar reddy (BA.BL)     26 September 2015

Non Judicial stamps A name B can use it

 

Nellore Vijaya kumar reddy (BA.BL)     26 September 2015

Non judicial stamp are in Pvt Limited company name.

but used by director for his personal  is it valid  ?


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion Unreplied Threads


Popular Discussion


view more »




Post a Suggestion for LCI Team
Post a Legal Query