Stamp Duty Payable on Leave and License Agreement in Gujarat

Stamp Duty Payable on Leave and License Agreement in Gujarat

The state of Gujarat has its own set of rules and regulations when it comes to stamp duty payable on a Leave and License agreement. A Leave and License agreement is a legal document that is used to rent out a property for a specified period of time. It is important to understand the stamp duty payable on such an agreement to avoid any legal complications in the future.

In Gujarat, the stamp duty payable on a Leave and License agreement is calculated based on the rent that is payable for the entire period of the agreement. The stamp duty payable is 0.25% of the total rent payable for the entire duration of the agreement. The stamp duty is calculated based on the rent payable for the entire period of the agreement, irrespective of whether the rent is paid monthly, quarterly, or annually.

For example, if the rent payable for a Leave and License agreement in Gujarat is Rs. 10,000 per month for a period of 12 months, the total rent payable for the entire period would be Rs. 1,20,000. The stamp duty payable on this agreement would be 0.25% of Rs. 1,20,000, which would be Rs. 300.

However, it is important to note that if the agreement is for a period of more than 36 months, it would be considered as a lease agreement and the stamp duty payable would be different. In such cases, the stamp duty payable would be calculated at 2% of the total rent payable for the entire duration of the agreement.

It is also important to ensure that the agreement is registered with the concerned authorities in compliance with the Registration Act, 1908. The registration fee for Leave and License agreements in Gujarat is Rs. 1,000. The registration of the agreement helps in avoiding any disputes that may arise in the future.

In conclusion, it is important to understand the stamp duty payable on a Leave and License agreement in Gujarat to avoid any legal complications in the future. The stamp duty payable is calculated based on the total rent payable for the entire period of the agreement. It is also important to ensure that the agreement is registered with the concerned authorities in compliance with the Registration Act, 1908.

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