How To Calculate Stamp Duty For Leave And License Agreement

In Maharashtra, holiday and licensing contracts must be stamped with a flat rate of 0.25 per cent of the total rent for this period. If a non-refundable bond is also paid to the lessor, stamp duty will be levied at the same rate on these non-refundable bonds. As we said, Mumbai is a prosperous and vibrant city. For newcomers to this place, finding the necessary things could be a cucumber. If you are someone like that, we are happy to inform you that you can now prepare a holiday and licensing contract from home! All you need to do is fill in your data and adapt our prefabricated and verified holiday contract and license model. Then you just have to print it on stamp paper and proceed as usual to the registration. We also have a large number of other legal documents, some of which come with the possibility of being printed on stamp paper and delivered to the address of your choice. Go ahead, try now! 10% x Refund x Number of Years of Agreement – C Each state in India has its own unique scale to collect stamp taxes, and we have made the computer available to our users so that they can calculate the stamp duty on holidays and the licensing agreement for the state of Maharashtra. Stamp duty is a tax applied by the governments of the states of Maharashtra and with respect to the rental of the property for a temporary period, no more than 60 months, u/s 36A of Schedule I of the Bombay Stamp Act, 1958. Registration fees are charged based on accommodation in the urban area or rural Area on Leave and License Agreement. (10% of the refundable deposit) -(year number for which the agreement is concluded) – z In Mumbai, if you receive your leave and license contract registered by a lawyer, it could cost somewhere between INR 3,000 to INR 7,000 including legal fees.

If you want to do it yourself, the INR fee would be 1,000 if your property falls under The Municipal Company and INR 500 if your property is in a rural area. Note that the contract must be registered within 4 months of signing it. Registration essentially means that you apply a seal of authenticity to the agreement, which means that an unregistered agreement is considered only as incidental by the courts and never as primary evidence. Stamp duty is the tax collected as compensation for the validity of your agreements. Stamp duty for different documents varies from state to state. As a general rule, for leave and licensing agreements, it is up to the licensee/lesser to pay the recommended stamp duty for the contract. In accordance with Article 36 A of the Bombay Stamp Act of 1958, stamp duty for leave and licensing agreements is 0.25% of the tax base calculated under the following formula imposed by the Maharashtra government – article 36, point A), clause a)…… (i) in Column 1, in Column 1, the words “thirty-three months” are replaced by the words “sixty months”; (ii) in columns 1 and 2, the words “11 months” are replaced by the words “twelve months”; As of May 1, 2013, the new stamp duty rates will apply to leave and licensing contracts. In accordance with the new amendment to sub-clause (a) of article 36 bis b), article 36 bis replaces, for sub-clause (a), the following clause, namely: (a) where the leave and licence contract provides for a maximum of sixty months, with or without an extension clause; “0.25% of the total; (i) the licence fee or the rent payable under the contract; plus (ii) the amount of non-refundable deposits or advanced money, or the prior application or premium under any name; plus (iii) interest calculated at a rate of 10% per annum on the refundable bond or advanced money, or advanced under any name.┬áIn accordance with the new subsection 2 of Section 70 of the Maharashtra Stamp Act, 1958 For documents with a stamp duty payable of one hundred and forty-nine rupees, $49 is ignored, or more than one hundred and eighty-nine, the amount in question will be rounded by the following hundred rupees.

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