In a 21-year lease deed where the lessee constructs a building on leased land and pays rent, the responsibility to pay municipal (corporation) taxes depends on the terms of the lease agreement. Generally, property ownership remains with the lessor, so municipal taxes on land are typically paid by the lessor, unless the lease specifically shifts this burden to the lessee.
When the lessee builds a structure, taxes relating to the building or improvements may be payable by the lessee as agreed. Therefore, the lease must clearly mention who bears land and building tax liabilities to avoid future disputes.
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In a 21-year lease deed where the lessee will construct a building on the leased land and pay rent to the lessor, who is responsible for paying the municipal (corporation) taxes?
Payment of corporation tax
Vithal Revadigar
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24 days
2025-11-17T10:19:25+00:00 2025-11-17T10:19:27+00:00Comment
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