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Manish   27 September 2018

Lease stamp duty

Incase the property is 10000 sqft in mumbai @Rs.100 ie 10L rent per month. The property is to be leased out for 15 yrs how much will be the stamp duty ? Considering 60 Lakhs is the deposit. Is there a fomulae to calculated lease stamp duty ? Location Chinchpokli, Shed & not an RCC structure.


 2 Replies

R.Ramachandran (Advocate)     27 September 2018

According to Article 36 (iii) of Schedule-I to Maharashtra Stamp Duty Act, for Lease including lease or sub-lease and any agreement to let or sub-let or any renewal of lease, where such lease purports to be for a period exfeeding ten years but not exceeding twenty nine years, with a renewal clause contingent or otherwise --- The Stamp Duty payable is the same duty as is leviable on a coneyance under Article 25, on 50% of the market value of the property.

Therefore, you have to first ascertain the market value of the property.  Upon the said market value, 50% should be taken for the purpose of payment of stamp duty.  Stamp duty is payable @ fifteen rupees for every rupees 500 or part thereof, if the property is non-residential.

Manish   28 September 2018

Thank you for your reply.

Let me put an example of what I have understood from your email.

Ready Reckoner Value is Rs.30000/ sqft then 50% of the market value ie Rs. 15000/ Sqft will be considered. Assuming an area of 7000 Sqft x Rs. 15000/Sqft = 10.50Cr is the value considered the rate of stamp duty is Rs.15/ for every Rs.500, hence the stamp duty amount will be Rs. 31.50L.

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