Stamp Duty for Leave and License Agreement in Delhi: A Comprehensive Guide
If you`re planning to rent out your property in Delhi, you need to have a leave and license agreement in place. This agreement spells out the terms and conditions of the lease, including the rent, security deposit, and duration of the lease. But did you know that stamp duty is also an important aspect of drafting a leave and license agreement? In this article, we`ll take a closer look at stamp duty for leave and license agreement in Delhi and what you need to know.
What is Stamp Duty?
Stamp duty is a tax that is levied on legal documents, including agreements, contracts, and deeds. When you create a legal document, you need to pay stamp duty to the government to make it legally enforceable. Stamp duty rates vary from state to state in India and are determined by the state government.
Stamp Duty for Leave and License Agreement in Delhi
In Delhi, the stamp duty for a leave and license agreement is determined by the Delhi government. The stamp duty rate for a leave and license agreement in Delhi is 2% of the average annual rent plus a registration fee of Rs. 1,100. This means that if the rent for the property is Rs. 15,000 per month, the stamp duty would be calculated as follows:
Annual rent = Rs. 15,000 x 12 = Rs. 1,80,000
Average annual rent = Rs. 1,80,000/12 = Rs. 15,000
Stamp duty = 2% of Rs. 15,000 = Rs. 300
Registration fee = Rs. 1,100
Total stamp duty = Rs. 1,400
It`s important to note that stamp duty must be paid before the agreement is signed and registered. Failure to pay stamp duty can result in the agreement being declared invalid by a court of law.
Stamp Duty for Renewal of Leave and License Agreement
If you renew your leave and license agreement, you will need to pay stamp duty again. The stamp duty rate for renewal of a leave and license agreement in Delhi is 0.1% of the average annual rent plus a registration fee of Rs. 1,100. So, if you renew the agreement for another year, the stamp duty would be calculated as follows:
Annual rent = Rs. 15,000 x 12 = Rs. 1,80,000
Average annual rent = Rs. 1,80,000/12 = Rs. 15,000
Stamp duty for renewal = 0.1% of Rs. 15,000 = Rs. 15
Registration fee = Rs. 1,100
Total stamp duty for renewal = Rs. 1,115
Conclusion
Stamp duty is an important aspect of creating a leave and license agreement in Delhi. It`s important to calculate and pay the stamp duty before signing and registering the agreement. Failure to do so can result in the agreement being declared invalid by a court of law. By following the guidelines mentioned above, you can ensure that your leave and license agreement is legally enforceable and protect your property rights.