Shreya Shah (Company Secretary) 17 February 2010

Execution of lease

Dear All,

We have two group companies say Company A & Company B. We are executing a letter and not a leave and license agreement whereby company A agrees to give on lease its certain premises to Company B on the following terms:

1. Security Deposit: Rs. _________

2. Monthly Rent: Rs. _________

3. Period of Lease: 11 months

My query is whether the above transaction is valid. Whether the above arrangement can be executed without preparing a leave and license agreement and without payment of stamp duty.

Thanks & Regards,
Shreya Shah

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1 Replies

Suresh CSLLM (Service) 18 February 2010

you have not mentioned location of property.

Title of document is immaterial to determine nature of trasaction whether its lease or license. Its depend on the terms and intention of the parties reduced in writing.

Lease or Leave and license is liable for stamp duty seprately as per the provision of the stamp act of state.

Although its simple letter, its lease or license depending upon the terms and circumstances.

Suresh