The Transfer of Property Act 1882

[Jasbir Uppal]

Dated:- 13 th Oct. 2012 

 A lease of immovable property for manufacturing purposes shall be deemed to be a lease from year to year basis. As per section 107 of The Transfer of Property Act 1882

Provided that the State Government may from time to time, by notification in the Official Gazette, direct that leases of immovable property, other than leases from year to year, or for any term  not exceeding one year, such leases, may be made by unregistered instrument

That the Commercial Tax insist to pay the stamp duty along with registration application  or before the grant the registration under UPVAT even the leasing period is below one year. Because as per section107 of The Transfer of Property Act 1882 A lease of immoveable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.

Pl. give the case law on such case and also the rate of stamp duty payable under U.P. Stamp act.

With regard

J.s.Uppal

[YAGAY andSUN]

Kindly refer the  India Stamp Act as amended and the UP Stamp Rules in this regard.

AI Summary

Lease classification under Transfer of Property Act requires registration for multi year or yearly rent leases; state notifications and stamp rules affect short leases. A lease of immovable property is subject to registration when it is from year to year, for any term exceeding one year, or reserves a yearly rent, but the State Government may notify that certain leases (other than year-to-year or those not exceeding one year) may be made by unregistered instrument; the practical dispute concerns Commercial Tax authorities requiring stamp duty and registration for leases below one year and reference to the India Stamp Act and UP Stamp Rules for stamp duty rates.