Anil Agrawal (Retired) 23 December 2008

Paying Guest Agreement

I am keeping a paying guest who is also a family friend. I have informed the local police station, given his photograph and resume and obtained acknowledgement and submitted it to the cooperative housing society. It now wants that there should be an agreement which should be registered. I reproduce below the following informationThe essential distinction between a Lease and a Licence is that in a Lease, there is transfer of interest in the property while in the case of licence, there is no such transfer although the Licensee acquires only a personal right to occupy the property. This principle has been confirmed by number of High Courts and Supreme Court judgements (AIR 1968 S.C. 175 (178), AIR 1989 S.C. 1816 (1990), Second Law Report 381, etc.). Can anybody guide me whether there has to be a properly executed agreement and registration also by paying stamp duty and registration fee? if so, how much.

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3 Replies

prof s c pratihar (medical practitioner &legal studies) 23 December 2008

dear mr agarwal,

in my place at saltlake calcutta all software engr staying as paying guest.i have seen one agreement.pls make it a leave and liscence agreement.the license will apply to youthat he wants to stay in your house with your permission.now you make an agreement for 11 months with a fixed premium.at the expiry of 11 months he shall vacatepositively.get this agreement notarised .so it is neither a lease nor a rent.

Anil Agrawal (Retired) 23 December 2008

Dear Sir,

Tks for your prompt response. The point is whether agreement should be got registered by paying registration fee and stamp duty.

Anil

AEJAZ AHMED (Legal Consultant/Lawyer) 24 December 2008

Dear Sir,

Exactly the applicable Licence Agreement you can get registere by paying the applicable Registration Fee and Stamp Duty as per following Table:

1. In case of license of a commercial / industrial shed / house etc. situated in the Bangalore Urban District in the state of Karnataka when a license-deed is executed stamp duty and registration fee is calculated as follows

Sl. No.

Particulars of license

Duty payable

Click on The Schedule to the Karnataka Stamp Act, 1957 Article 32A

1

(A) (a) Where rent is fixed and no premium is paid

(i)Period of license 11 months

(ii)Rent fixed Rs.1,000=00 per month.

Rs.550=00

Article 32A(a)(i)

(b) (i) Period of license 5 years

(iii)Rent fixed is Rs.1,000=00 per month.

Rs.600=00

Article 32A(a)(ii)

(c) (i) Rent fixed is Rs.1,000=00 per month.

(iv) Period of license 10 years

Rs.960=00

Article 32A(a)(iii)

(d) (i) Period of license 20 years

(v)Rent fixed is Rs.1,000=00 per month.

Rs.1920=00

Article 32A(a)(iv)

(e) (i) Period of lease 30 years

(vi)Rent fixed is Rs.1,000=00 per month.

Rs.2880=00

Article 32A(a)(v)

2

(B) Where entire rent / premium paid in advance.

8% for the whole lump sum amount advanced.

Article 32A(b)

3

(C) Where entire rent / premium paid in advance in addition to the rent

8% for the whole lump sum amount advanced. Plus duty as explained at sl.no.1 as the case may be.

Article 32A(c)

4

Registration fee

1%

The Table of Fees

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Sl. No.	Particulars of license	Duty payable	Click on The Schedule to the Karnataka Stamp Act, 1957 Article 32A
1	(A) (a) Where rent is fixed and no premium is paid (i)Period of license 11 months (ii)Rent fixed Rs.1,000=00 per month.	Rs.550=00	Article 32A(a)(i)
	(b) (i) Period of license 5 years (iii)Rent fixed is Rs.1,000=00 per month.	Rs.600=00	Article 32A(a)(ii)
	(c) (i) Rent fixed is Rs.1,000=00 per month. (iv) Period of license 10 years	Rs.960=00	Article 32A(a)(iii)
	(d) (i) Period of license 20 years (v)Rent fixed is Rs.1,000=00 per month.	Rs.1920=00	Article 32A(a)(iv)
	(e) (i) Period of lease 30 years (vi)Rent fixed is Rs.1,000=00 per month.	Rs.2880=00	Article 32A(a)(v)
2	(B) Where entire rent / premium paid in advance.	8% for the whole lump sum amount advanced.	Article 32A(b)
3	(C) Where entire rent / premium paid in advance in addition to the rent	8% for the whole lump sum amount advanced. Plus duty as explained at sl.no.1 as the case may be.	Article 32A(c)
4	Registration fee	1%	The Table of Fees