2.4 A common misunderstanding among many people is that a leave and a licence can only be for 11 months. The basic framework for stamp duty is defined in the Indian Stamp Act of 1899, which allows states to change the same rules according to their needs. As a result, the Maharashtra government passed the Bombay Stamp Act in 1958. The payment of stamp duty on leave and licensing agreements are covered by Section 36A of the Bombay Stamp Act of 1958. Stamp duty: Bombay HC stamp duty cannot be levied for past transactions. In order to reduce the impact of stamp duty, people paid a substantial amount as an interest-free surety, as well as nominal rent. This gap has been filled and, in cases where a refundable deposit is recovered by the owner, a fictitious annual rate of 10% is set on an interest-free deposit and you must pay stamp duty at the same rate for each year of the term of the licence agreement. For technically experienced and super-busy people, it couldn`t be easier to save your vacation and your license document. There are tools available online that offer document production and electronic recording services.
The Maharashtra Govt. many have taken an initiative to simplify the whole process, and that is why e-registration has become so popular. Here`s what you need to know about e-registration of your leave and licensing document- stamp duty is a tax applied by the governments of Maharashtra states 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% x refundable deposit x Number of years of contract – C If you z.B. Entering into a leave and licence contract for 24 months, with a monthly rent of Rs 25,000 and a refundable deposit of five Lakhs, you must pay a stamp duty of Rs 1,750 (0.25% on the rent of Rs six Lakhs for two years and interest of Rs a Lakh for two years). If you have your leave and license contract registered by a lawyer in Mumbai, it could cost between 3,000 and 7,000 INR, 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. Housing.com has launched a fully digital, contactless service to create leases. If you want to complete the formalities quickly and without any problems, you just have to fill out the details, create the online rental contract, sign the contract digitally and get an electronic stamp in seconds.