The basic framework for stamp duty is defined in the Indian Stamp Act of 1899, which allows states to change the same rules according to their needs. As a result, the Maharashtra government passed the Bombay Stamp Act in 1958. The payment of stamp duty on leave and licensing agreements are covered by Section 36A of the Bombay Stamp Act of 1958. 10% x Repayment x Number of Years of Contract – C However, for Maharashtra, the law has been strengthened and, in accordance with section 55 of the Maharashtra Rent Control Act, 1999, any lease or leave agreement and licence must be written in writing and the same must be registered in a mandatory manner, regardless of the length of the lease. In Maharashtra, holiday and licensing contracts must be stamped with a flat rate of 0.25 per cent of the total rent for this period. If a non-refundable bond is also paid to the lessor, stamp duty will be levied at the same rate on these non-refundable bonds. In order to reduce the impact of stamp duty, people paid a substantial amount as an interest-free surety, as well as nominal rent. This gap has been filled and, in cases where a refundable deposit is recovered by the owner, a fictitious annual rate of 10% is set on an interest-free deposit and you must pay stamp duty at the same rate for each year of the term of the licence agreement. A tenant can only revoke an agreement if it is expressly mentioned in one of the clauses.
The licensee may issue a notification to the licensee, in which he expresses his wish to market the licensee. The deadline for the adoption of the notice should be set in the agreement. Stamp duty is a tax applied by the governments of the states of Maharashtra and with respect to the rental of the property for a temporary period, no more than 60 months, u/s 36A of Schedule I of the Bombay Stamp Act, 1958. Registration fees are charged based on accommodation in the urban area or rural Area on Leave and License Agreement.