Stamp duty chargeability on rent agreements above

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This query is : Resolved

Sanjay shrivastavva (Querist)

26 September 2012 stamp authorities in U.P. are insisting to pay stamp duty on commercial rental agreementof shops . where rent exceeds above Rs. 10 lacs per annum they also insist on including service tax payable as a part of the rent. is it legal
if legal how it is to be calculated . I am lesse of a shop paying rental of Rs.2,32,000/- p.m. , rental agreement is for 03 years. rate of stamp duty is 4% of rental value per annum. how stamp duty will be calculated
sanjay

CA Suresh Jain

CA Suresh Jain (Expert)

26 September 2012 For the purpose of stamp duty the rent includes the amount payable by the tenant on any account and it is legal.

calculation is 2.32 lakh x 12 x 4%

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Sanjay shrivastavva

Sanjay shrivastavva (Querist)

26 September 2012 sir, thanks for reply. but my query still remains unresolved. will i have to include service tax payable in this rental amount. since service tax is chargeable on rental value if it exceeds 10 lakhs. so in my view sevice tax on rental value will be exempt till 10 lakhs and the service tax amount payable on and above the value of 10 lakhs will be included in the rental value and the stamp duty to be paid on said amount. pl. clarify
sanjay

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