venkitasubramanian m d (advocate) 11 March 2010

Kerala Stamp Act and Indian Regn. Act

KERALA STAMP ACT AND INDIAN REGN ACT LEASE DEED WITH SECURITY AMOUNT. WHAT STAMP DUTY PAYABLE "

The lease of a property for running a resort. for ten years, with rent revision provision for every year. Security deposit of few lakhs collected. A refundable security deposit as a gaurantee for due performance is taken to be refunded with out interest. Can security deposit come uinder the word Premium under the Indian Stamp Act and would stamp duty be payable for regn. of the lease deed.

KINDLY ANSWER AND IT WILL BE NICE AS THERE ARE RULINGS REGARDING THE MEANING OF THE WORD PREMIUM OR FINE IN THE KIERALA STAMP ACT. PL. REFER YOUR EXPERIENCE OR RULINGS ON THE POINT

THANK YOU AND LOOKING FORWARD TO YOUR REPLY

VENKAT AD.

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SUBRAMANIAN C R (ADVOCATE) 01 May 2010

Please refer to the clarification issued to the IG of Reistration by the Secretary to government (Taxes E Department) No: 14586/E3/82/TD dated 24-02-1983.

If the amount is taken as security/deposit/advance which is refundable on determination of the lease, no duty is chargeable in addition to the duty paid on the rent reserved. It will not make any difference in the chargeability of duty if the deposit etc is adjustable in rent/other charges or dues.

But in case of security deposit paid for due performance of the contract of lease, it is chargeable under Art. 57 ISA (art 50 of Kerala Stamp Act).

Adv. C.R. Subramanian

Cell: 9447842815