Stamp Duty On Leave And License Agreement In Karnataka

Stamp Duty On Leave And License Agreement In Karnataka

It is the owner`s responsibility to ensure the registration of the rental agreement, failing which the landlord may have to pay a penalty of Rs 5,000 and punish himself with a prison sentence of up to three months. In the event that the leave and license contract is not registered and disputes arise between the lessor and the tenant, the contractual conditions invoked by the tenant are considered to be the real and correct conditions in which the property was given for rent, unless proven otherwise. The registration fee for rentals in Karnataka is 1% of the rent + deposit. Although many people are unaware of the importance of paying proper stamp duty and registering the document, these factors cannot be ignored. In the absence of payment of a corresponding stamp duty, the dispute between thought rights may have to pay ten times the initial value as a fine. Both the tenant and the lessor must check all the clauses mentioned in the document before signing. It is good practice to share the draft treaty first before going to print. Once you have checked and understood the details and conditions mentioned in the document, it can be verified. For the registration of the contract, you need some basic documents of the tenant, the owner and witnesses, such as a passport photo, a photocopy of the proof of identity (for example. B PAN card) and the electricity bill or the real estate document such as index II or tax proof of the rented property. The stamp duty rate for holiday and licence contracts is the same for residential premises and for commercial premises. The leave and licence contract may be concluded for a maximum period of 60 months.

Sometimes you may choose not to pursue the deal and may want to recover the token advance paid. In this case, if the owner agrees to repay the full advance, it is good and good. But if the owner suffers a loss of money, he can deduct a sum from the token advance and return the same to you. However, if your reason for terminating the contract is valid, you can recover the full amount. For example, if you enter into a 24-month vacation and license agreement with a monthly rent of 25,000 rupees and a refundable deposit of five Lakh Rs, you must pay a stamp duty of 1,750 rupees (0.25% on the rent of six lakhs for two years and interest of one lakh for two years). . . .

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