Stamp Duty on the leave and licence agreement: Before amendment in the Bombay Stamp Act,1958 the stamp duty payable on a Leave & Licence Agreement was Rs.20/- as per Article 5 (h) of Schedule I to that Act.

Under the amendment to the Act which came into effect with from May 1, 2001. Article 36A has been inserted in Schedule- I which reads as follows:

·         Where the leave and license agreement purports to be for more than one term of eleven months but not exceeding three such terms, –

1.

Where the amount of average annual rent + he amount of security deposit, or money advanced or to be advanced does not exceed Rs. 2,50,000/-

Rs. 500/-

2.

Where the amount of average annual rent + the amount of security deposit, or money advanced or to be advanced exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-

Rs. 1000/-

3.

Where the amount of average annual rent + the amount of security deposit, or money advanced or to be advanced exceeds Rs. 5,00,000/-

Rs. 2000/-

  • Where such leave and license agreement purports to be for a period exceeding 3 terms as described in clause (a) with or without renewal clause the same stamp duty as is leviable on lease, under clause (a), (b) or (c) as the case may be of Article 36.

The registration charge for a leave and license agreement is Rs. 1000/- only.

Leave & License 

 

What amount of Stamp Duty one will have to pay on the leave and licence agreement?

Before amendment in the Bombay Stamp Act,1958 the stamp duty payable on a Leave & Licence Agreement was Rs.20/- as per Article 5 (h) of Schedule I to that Act.

Under the amendment to the Act which came into effect with from May 1, 2001. Article 36A has been inserted in Schedule- I which reads as follows:

·         Where the leave and license agreement purports to be for more than one term of eleven months but not exceeding three such terms, –

1.

Where the amount of average annual rent + he amount of security deposit, or money advanced or to be advanced does not exceed Rs. 2,50,000/-

Rs. 500/-

2.

Where the amount of average annual rent + the amount of security deposit, or money advanced or to be advanced exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-

Rs. 1000/-

3.

Where the amount of average annual rent + the amount of security deposit, or money advanced or to be advanced exceeds Rs. 5,00,000/-

Rs. 2000/-

  • Where such leave and license agreement purports to be for a period exceeding 3 terms as described in clause (a) with or without renewal clause the same stamp duty as is leviable on lease, under clause (a), (b) or (c) as the case may be of Article 36.

The registration charge for a leave and license agreement is Rs. 1000/- only.

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