Legal Question in Construction Law in India

rented property duty payable to goverment

I had taken an office space on rent (2 years lease). What has to be paid to the goverment. Tell me about all the duties and taxes related to the lease deed. Lease was made on June 2004.


Asked on 1/31/06, 8:13 am

1 Answer from Attorneys
KAVITA SARIN Lawyers' Inc. Advocates & Attorneys

Re: rented property duty payable to goverment

The duty could be divided into two types:

1-Property tax

2-Stamp dtuy for registration of lease deed.

1-Property tax- It is usually paid by the Lessor(owner of the property) unless otherwise agreed to between the parties.

2-Stamp duty- It is payable once the lessor or lesse wants the lease deed to be registered. The duty is usually paid by the lesse. Any deed that is for more than one year needs to be registered. Though it is not compulsary. The duty varies from state to another state. The Stamp duty in Delhi is 2% of the agreed annual rent of the premises.

regards

Kavita Sarin Advocate

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Answered on 2/02/06, 1:51 am


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