Stamp Duty on Leave and License Agreement in Madhya Pradesh
If you are planning to rent out your property in Madhya Pradesh, it is important to know the legal norms that govern the process. One of the major aspects of renting out a property is the Leave and License Agreement, which is a legal document that outlines the terms and conditions of the agreement between the landlord and the tenant. In this article, we will discuss the stamp duty that is levied on a Leave and License Agreement in Madhya Pradesh.
What is a Leave and License Agreement?
According to the Indian Easements Act, 1882, a license is the grant of permission by one person to another to do something on the former`s property, which would otherwise be unlawful. A Leave and License Agreement is a legal document that outlines the terms and conditions of the agreement between the landlord and the tenant. It specifies the duration of the agreement, the rent payable, the security deposit, and the conditions under which the agreement can be terminated.
Stamp Duty on Leave and License Agreement in Madhya Pradesh
Stamp duty is a tax that is levied on legal documents, including Leave and License Agreements. The stamp duty on a Leave and License Agreement in Madhya Pradesh is governed by the Indian Stamp Act, 1899. The stamp duty is typically a percentage of the total value of the agreement and varies from state to state. In Madhya Pradesh, the stamp duty on a Leave and License Agreement is 1% of the total value of the agreement.
Calculation of Stamp Duty on Leave and License Agreement in Madhya Pradesh
The stamp duty on a Leave and License Agreement in Madhya Pradesh is calculated based on the value of the agreement. The value of the agreement is usually the amount of rent payable for the entire duration of the agreement. For example, if the rent payable is Rs. 10,000 per month and the duration of the agreement is two years, the value of the agreement would be Rs. 2,40,000 (Rs. 10,000 x 24 months). The stamp duty payable would be 1% of Rs. 2,40,000, which is Rs. 2,400.
Payment of Stamp Duty
The stamp duty on a Leave and License Agreement in Madhya Pradesh can be paid in two ways – either through a stamp paper or through an e-stamp. A stamp paper can be purchased from a licensed vendor and can be used to execute the agreement. An e-stamp, on the other hand, is a digital form of stamp paper that can be purchased online. Once the stamp duty is paid, the agreement can be executed.
Conclusion
In conclusion, if you are planning to rent out your property in Madhya Pradesh, it is important to know the legal norms that govern the process. The stamp duty on a Leave and License Agreement in Madhya Pradesh is 1% of the total value of the agreement. The stamp duty can be paid through a stamp paper or an e-stamp. It is important to ensure that the stamp duty is paid before executing the agreement to avoid any legal complications in the future.