Raviraj Rajput (Accounts & Finance) 22 February 2009

Stamp Duty, SPA and Registration of Leave and License Agreement

Dear All,

My company (Licensee) (ABC Pvt. Ltd.) is taking an office premises on Leave and License basis from an Indian inhabitant(Licensor) .Premises is located in Delhi. Licensor (aged 70 yrs) resides in Mumbai. It is agreed we shall prepare SPA in Mumbai (in favor of Licensor's daughter or daughter -in- law as the case may be) and get it registered here in mumbai itself. Monthly rent is Rs.100000 (one lac). Term is 4 years and 1 year renewal .This term does does not include first three months which he provides us free of rent for interior decoration. My questions are:-

1. Whether SPA needs to be prepared in Mumbai (residence) or Delhi (premises location) or any other place??

2. Whether SPA needs to be registered compulsorily?? If yes is there the stamp duty / registration charges??

3. What is stamp duty on agreement ?? (Please give calculation) Can it be reduced if we take 3 yrs + 1 yr. renewal. i was informed by Mr. x that stamp duty is Rs. 24100. Is it correct??

4. What are registration charges of agreement?? Where is it registered in Delhi or Mumbai??

Reply Follow

10 Replies

sanjeev gupta (Advocate) 24 February 2009

Dear Sir,

Ur rent premises is in Delhi, so that lease agreement is registered at Delhi, with in the juridication of that area, in which rent premises is located.

And Stamp Duty is Rs. 24,100/-, because rent is Rs.1,00,000/- per month and calculation is Rs.1,00,000/- X 12 = 12,00,000/-

Stamp Duty Rs. 2 % of Rs.12,00,000/- = Rs.24,000/- plus Rs.100/- for Security.

for registration of Lease agreement u should have GPA or SPA from the landlord from Mumbai, it should be registered at Munbai.

BHANU RASPUTRA (ADVOCATE & SOLICITOR divyatta.r@gmail.com) 11 March 2009

I AGREE WITH MR. GUPTA VIEW

Mrudula (legal Practice in property and Labour laws) 20 March 2009

sir i am agree with your reply. But please guide : Does this stamp duty is applicable only for one year agreement or for 4 years agreement? Because the premises is agreeed to be given on rent for four years. What is the provision. please Differentiate.

BHANU RASPUTRA (ADVOCATE & SOLICITOR divyatta.r@gmail.com) 30 March 2009

MR. GUPTA CAN ANSWER ABOUT AMOUNT AT DELHI. SUGGESTED AMOUNT IS FOR 12 MONTH ONLY.

Anwesha (Student) 02 November 2009

Sir,

If you could please tell me the provision from where you derived the calculations.

PAWAN KUMAR JAIN (PROP.) 05 February 2010

WHAT WILL BE THE COST OF REGISTRATION OF LEAVE AND LICECNCE AGREEMENT IN DELHI AND FOR DAWARKA AREA, FROM WHICH OFFICE CAN I GET IT REGISTERED OR WHETHER IT IS REQUIRED TO BE REGISTERED OR NOT.

Ritesh (Advocate) 02 November 2011

guys i have just one basic doubt . The agreement being talked about here is a 'leave and license' agreement and not a 'lease'. In law 'lease' is different from a 'leave and license'. While 'lease' is defined in section 105 Transfer of Property Act, license is defined in section 52 of the Easement Act. The two are esentially diffferent. Therefore the applicable stamp duty on a leave and license agreement must necessarily be different from stamp duty on a leave, unless provided in law