Stamp duty is the tax you pay to the government for the authorization of real estate transaction, while the franc is the process of granting these legal property documents stamp. LegalDesk.com offers a very convenient way to visit your online rental contract and without having to worry about lawyers or looking for stamp papers. You can also create a variety of other legal documents with LegalDesk.com! Difference between stamp duty and frankie fees Img Source: www.karnataka.com Another popular rental method is the long-term lease. A lump sum is paid in the form of a one-time deposit for a fixed period or a fixed term of tenancy, such as 2 years or 3 years. The tenant or tenant does not pay monthly rent. At the end of the rental period, the owner must repay the entire interest-free deposit. In the case of a long-term lease, the advantage is that there is no trouble paying a monthly rent and that this type of rent can save a lot of money. There may be maintenance, electricity and water costs that must be paid regularly. If the agreement contains a security deposit, add 100 Rs 100 and Rs 1,100 as a registration fee, bringing the total cost to Rs 6,240. The fees of lawyers or other intermediaries for all documents are not taken into account.
Franking is the process of stamping a property document using a charter machine. The process will only be facilitated by banks and authorized agents who can affix your legal documents or affix a certain unit value that proves that stamp duty has been paid for the transaction. The Francisation fee must be paid to the authority for the stamp of your paper. Royalties are generally 0.1% of the total. Franking fees may vary from country to country. Typically, it amounts to 0.1% of the purchase value. For example, if you bought a property worth 40 lakhs worth 40 lakhs, the frankier fee is Rs 4000. Keep in mind that this tax is part of stamp taxes.
So if the stamp duty in your country is 6.5%, you should pay 6.4% to the sub-registry office and the rest to the francization authority. The registration fee for rental contracts in Karnataka is 1% of the deposit. While many people forget the importance of paying a correct stamp duty and registering the document, these factors cannot be ignored. If the corresponding stamp duty is not paid, the parties may have to pay, in the event of a dispute, 10 times the original value as a fine. Most leases are signed for 11 months so they can avoid stamp duty and other fees. Under the Registration Act of 1908, registration of a lease is mandatory if the tenancy period is more than 12 months. If an agreement is registered, stamp duty and registration tax must be paid.