Stamp
duty not applicable to paying guest
By
M K Gokhale
Dy.
Superintendent of Stamps (Retd)
A
Member of the Housing Society referred a question for answer whether
the license agreement is mandatory for the paying guests and if so
what is the value of the stamp duty ?
Sub.
Section (5) of Section 7 of the Maharashtra Rent Control Act, 1999,
defines the "Licensee" in respect of any premises or any
part thereof, means the person who is in occupation of the premises or
such part, as the case may be, under a subsisting agreement for
license given for a license fee or charges, and includes any leased to
a Co-op. Housing society registered or deemed to be registered under
the Maharashtra Co-op. Societies Act, 1960, but does not include a
paying guest, a member of a family residing together, a person in the
service or employment of the licensor, etc.
If
the paying guest is staying with the member there is no question of
parting with the possession of the Flat.
From
the aforesaid definition, it is very clear that the provisions of the
Maharashtra Rent Control Act, 1999 are not applicable to the 'Paying
Guest'.
I
am therefore of the view that the paying guest is staying in the
premises along with the licensor and he or she has not possession of
the premises or part thereof, such paying guest cannot considered as
"Licensee" under the Maharashtra Rent Control Act, 1999 and
therefore need not require to execute any License Agreement and
therefore the question of payment of Stamp Duty does not arise.
I
may mentioned that paying guest and licensor must be shown to be
residing in the same premises as required under Section 5(4A) as
different from licensee where expression of such requirement are
absent paying guest not being a Licensee cannot claim, rights as
contemplated under Section 15A [1988-2 BOM.C.R. 300 (S.C.) Surendra V.
Royce.]
Updated on 6th September 2005
