Stamp Duty
STAMP DUTY ON LEAVE AND LICENCE AGREEMENT:
By Bankimchandra P. Khona
1) In Maharashtra Stamp Duty on Leave & Licence Agreement is payable as per Article 36 (A) of Schedule – I of Bombay Stamp Act, which reads as under:-
“36A. Leave and Licence Agreement.
(a) Where the leave and licence
Agreement is with a licence fee
or rent fixed or otherwise,-
(i) for a period not exceeding Two Thousand rupees;
one year without any renewal
clause;
(ii) for a period exceeding one Ten thousand rupees;
year but not more than three
years without any renewal
clause;
(iii) For a period exceeding three The same duty as is
years with or without any leviable on a lease
renewal clause; article 36;
(b) Where the leave and licence The same duty as is
agreement is executed for leviable under clause
security deposit or money (a)(i), (ii) or (iii),
advanced with or without licence as the case may be and
fee or rent fixed. in addition one percent of security deposit or
money advanced or to be
advanced.
Considering 36A (a) (i) & ( ii) – very interesting situation arises. 36A (a) (i) & (ii) provides stamp duty in a case where the licence is for a period not exceeding one year without any renewal clause. What happens if licence is not for a period exceeding one year but there is renewal clause. In a case where the licence is not exceeding one year and there is a provision of renewal clause it is respectfully submitted that the Article 36 A (a) (i) will not apply. In fact whole Article 36A will not apply. Similarly, if licence is exceeding for a period of one year but it is not more than three years and if there is a provision for renewal then 36A (a) (ii) also does not apply. In fact 36A will not apply.
Then the question arises what happens to Leave & Licence Agreements wherein they are for less than period of one year or more than one year or less then three years or if there is a provision of renewal clause , Article 36A of Schedule – I of Bombay Stamp Act will not apply. The Article which will apply to such Leave & Licence Agreement is an Article 5 (h) of Schedule – I ) of the Bombay Stamp Act, which reads as under:-
” Agreement or its records or memorandum of Agreement ( H), if not, otherwise provided for. Stamp Duty on such Agreement is Rs.20/-.
4) It is, therefore, submitted that stamp duty payable in a case of Agreement of Leave & Licence for a period not exceeding one year but there is renewal clause or Leave & Licence Agreement for a period exceeding one year but not more than three years but with renewal clause then such Leave & Licence Agreement will be required to be stamped with only Rs.20/- and not Rs.2000/- or Rs.10,000/- as wrongly contended by the Stamp Authorities and the Sub-Registrar. Therefore, it is in the interest of parties if they want to pay Rs.20/- as licence fee in a case of licence less than three years should have a clause of renewal.
Refund of stamp duty where there is cancellation of deal with the builder before possession & during construction period, before completion of the building, before OC etc.
If the deal is cancelled for want of conditions not fullfilled, stamp duty may be refunded.
Is there any time limit for refund of stamp duty, e.g. if deal is cancelled after 2 years before possession of the property, before amendment of Section 48, the refund could be allowed if deal is cancelled within 2 years, now what are new amended provisions of Stamp Duty Act in respect to Section 48(1)
A flat was purchased with Co-owner. Want to remove a co-owner name from the Housing society and the property agreement. Co-onwer was added only for convenient purpose. Whether stamp duty applicable for removal of co-owner name? Registration required? Co. Hsg. Scoiety can charge anything for removing the name?
Dear Nipun, There is no stampduty or registration charges for removal of name. As such, such member is treated as Associated member. There no regisration required. No charges, except paper advertisement and legal charges acutally spent, will be charged.