TaxTMI 
TaxTMI 
2025 (10) TMI 1255
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....p duty of Rs. 51,740/- along with penalty of Rs. 2,06,960/-. The petitioner further seeks a direction for refund of the additional stamp duty amounting to Rs. 2,58,700/-. 2. The factual matrix, as set forth by the petitioner is that he entered into a lease deed dated 01.07.2020 with Optimum Therapeutics Private Limited, in respect of property bearing No. F-63, Poorvi Marg, Vasant Vihar, New Delhi. Clause 6 of the said lease deed unequivocally stipulates that the property shall be used solely for residential purposes. 3. On presentation of the lease deed for registration before the Sub-Registrar VII-A, it was impounded under Section 33 of the Indian Stamp Act, 1899 on the alleged ground of deficient stamp duty, due to the purported app....
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....roup or Service Code (Tariff) Description of Services Rate (Percent) Condition 12 Chapter 9963 or Heading 9972 Services by way of renting of residential dwelling for use as residence Nil Nil 8. Attention is also drawn to the Circular dated 02.05.2018, bearing No. 44/18/2018-CGSTissued by the Tax Research Unit, Department of Revenue, Ministry of Finance, Government of India. The relevant extract of the said circular reads as under : "5. To sum up, the activity of transfer of 'tenancy rights' is squarely covered under the scope of supply and taxable per-se. Transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable. However, renting of residential dwel....
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.... this juncture, it is pertinent to refer sub section 16 of section 2 of the Indian Stamp Act, 1899 which provides definition for lease and the same is indicated as under:- "....Lease" means a lease of immovable property and includes also - (a) a palla, (b) a kabuliyat or other undertaking in writing, not being a counter part of lease..." Section 105 of the Transfer of Property Act, 1882 also provides definition for lease. It says that "A lease of immovable property is a transfer of a right to enjoy such property made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered peri....
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.... as to whether the GST payable by the lessee should be chargeable for stamp duty or not. The opinion of the Advocate General of Tamil Nadu was sought for on the point whether the GST payable by the lessee should be treated as part of rent as per the explanation provided under Article 35 of Schedule I to the Indian Stamp Act, 1899. The Advocate General of Tamil Nadu in his opinion has stated that from the reading of the Explanation provided under Article 35 of the Schedule I to the Indian Stamp Act, 1899, it is clear that when the lessee undertakes to pay any recurring charges such as Government revenue, the landlord's share of cess and municipal tax, such amount shall be deemed to be a part of the rent and that GST on rent amount i....