Would we have to pay stamp duty on the maintenance component of the total agreement value for a property located in BLR.

Q: The property will be leased to us, I needed to understand if we have to pay stamp duty on the total Agreement Value (comprising of Security Deposit, Rent and Maintenance Component) also specifically do we have to pay stamp duty on the maintenance component as well or should the stamp duty be paid only on the total of Rent and Security Deposit?

Shivangi,

31st May 2017

Property Tax in Bangalore

property tax

rental agreement in bangalore

stamp duty on rental agreement

registration charges on rental agreement

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No, you do not have to pay stamp duty on maintenance component. Your owner is asking illegal charges. To get more details please read this article, I hope you will get some good ideas from this article. https://legaldesk.com/documents/rental-agreement/ka-bangalore

Niketan Verma, Bangalore

21st November 2017

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Hello Shivangi,
But remember, do not overlook the importance of paying proper stamp duty and registering the document, these factors can not be ignored. If appropriate Stamp Duty is not paid, should a dispute arise, parties involved may have to pay ten times the original value as a penalty?

Ankur Laal Podder, Bangalore

21st November 2017

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Hi Shivangai,
In the state of Karnataka, maximum Stamp Duty that can be levied on any rental agreement is Rs.500 however, it is typically calculated as follows - Up to 10 years - 1% of annual rent plus deposit and above 10 years - 2% of annual rent plus deposit. Registration charges for rental agreements in Karnataka stand at 1% of rent plus deposit.

Devraj Shah, Bangalore

21st November 2017

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