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Free Commercial Lease Agreement Template for India

Lease commercial office, retail, or industrial premises in India with a professionally drafted Commercial Lease Agreement. Our template addresses the Transfer of Property Act 1882, applicable state Rent Control Acts, GST at 18% on commercial rent, stamp duty, and mandatory registration for leases over one year.

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COMMERCIAL LEASE AGREEMENT
LESSOR / LANDLORD
Sharma Properties Private Limited
Plot 12, Andheri East, Mumbai - 400 069, Maharashtra, PAN: AABCS1234D · GSTIN: 27AABCS1234D1Z5
By: +91 98765 43210 · landlord@sharmaproperties.in
LESSEE / TENANT
TechVenture Solutions Private Limited
5th Floor, One BKC, Bandra Kurla Complex, Mumbai - 400 051, Maharashtra, CIN: U72200MH2021PTC345678 · GSTIN: 27AABCT9876G1Z5
By: Rohan Mehta, Director
Commencement: 1 May 2026
Office / IT / ITES Use · Duration: 3 years
LEASE DETAILS
PREMISESUnit 4A, 4th Floor, Peninsula Business Park, Lower Parel, Mumbai - 400 013
FLOOR / UNIT4th Floor, Unit 4A
AREA2500 sq ft
PERMITTED USEOffice / IT / ITES Use
COMMENCEMENT DATE1 May 2026
LEASE DURATION3 years
MONTHLY RENT2,50,000.00 INR (exclusive of GST)
SECURITY DEPOSIT7,50,000.00 INR
ANNUAL ESCALATION5% per annum
LOCK-IN PERIOD18 months
This Commercial Lease Agreement ("Agreement") is entered into as of 1 May 2026 by and between Sharma Properties Private Limited ("Lessor"), having address at Plot 12, Andheri East, Mumbai - 400 069, Maharashtra, and TechVenture Solutions Private Limited ("Lessee"), having its registered office at 5th Floor, One BKC, Bandra Kurla Complex, Mumbai - 400 051, Maharashtra. This Agreement is governed by the Transfer of Property Act, 1882 ("TPA 1882"), and all other applicable laws of India.
1.
DEMISE OF PREMISES
The Lessor hereby grants and demises to the Lessee the premises described as Unit 4A, 4th Floor, Peninsula Business Park, Lower Parel, Mumbai - 400 013, 4th Floor, Unit 4A, admeasuring approximately 2500 sq ft (the "Premises"), for the sole purpose of Office / IT / ITES Use, to be used for no other purpose whatsoever without the prior written consent of the Lessor. The tenancy shall be construed as a lease under s. 105 of the TPA 1882. The Lessee shall not sublet, assign, or part with possession of the Premises or any part thereof without the prior written consent of the Lessor (TPA 1882 s. 108(j)).
2.
LEASE TERM
The lease shall commence on 1 May 2026 and shall continue for a period of 3 years (the "Lease Term"), unless sooner determined in accordance with the provisions of this Agreement. Neither party shall be entitled to terminate this Agreement during the initial lock-in period of 18 months from the Commencement Date, except in the event of a material breach of this Agreement. Registration Notice: As this Agreement is for a period exceeding twelve (12) months, it shall be compulsorily registered with the Sub-Registrar of Assurances having jurisdiction over the Premises, in accordance with s. 17 of the Registration Act, 1908. Stamp duty payable under the Maharashtra Stamp Act shall be borne as mutually agreed. An unregistered lease for a term exceeding 12 months shall not be admissible in evidence in any court of law.
3.
RENT AND PAYMENT
The Lessee shall pay to the Lessor a monthly licence fee / rent of 2,50,000.00 INR (Rupees 250000 only), exclusive of applicable taxes, payable on or before the 5th day of each calendar month. Any amount remaining unpaid after the due date shall carry interest at 18% per annum from the due date until actual payment. The Lessee shall be entitled to deduct Tax Deducted at Source (TDS) from rent payments as may be applicable under s. 194-I of the Income Tax Act, 1961, and shall provide Form 16A to the Lessor within the prescribed time. The monthly rent shall be escalated by 5% on each anniversary of the Commencement Date.
4.
SECURITY DEPOSIT
The Lessee has paid / shall pay to the Lessor an interest-free refundable security deposit of 7,50,000.00 INR (the "Security Deposit") upon execution of this Agreement. The Security Deposit shall be held by the Lessor as security for the due performance of the Lessee's obligations under this Agreement. The Lessor shall refund the Security Deposit within thirty (30) days of the Lessee vacating the Premises, after deducting any outstanding rent, CAM charges, utility bills, or the cost of rectifying any damage caused by the Lessee beyond fair wear and tear. No interest shall be payable on the Security Deposit unless otherwise agreed in writing.
5.
GST ON COMMERCIAL RENT
GST at the rate of 18% shall be charged by the Lessor on the monthly rent pursuant to the Central Goods and Services Tax Act, 2017 ("CGST Act, 2017"). The Lessor, being registered under GST bearing GSTIN 27AABCS1234D1Z5, shall issue a valid Tax Invoice for each monthly rental payment in accordance with s. 31 of the CGST Act, 2017. The total monthly amount payable shall be the base rent of 2,50,000.00 INR plus GST at 18% and CAM charges of 30,000.00 INR plus applicable GST. The Lessee, bearing GSTIN 27AABCT9876G1Z5, shall be entitled to claim Input Tax Credit (ITC) on GST paid on commercial rent to the extent permitted under the CGST Act, 2017, provided the Premises are used exclusively for business purposes. The Lessee shall not claim ITC if the Premises or any part thereof is used for exempt supplies or non-business purposes.
6.
CAM CHARGES AND MAINTENANCE
The Lessee shall pay CAM charges of 30,000.00 INR per month (exclusive of GST) in addition to the base rent. Property tax on the Premises shall be borne by the Lessor directly to the concerned municipal authority. The Lessee shall, at its own cost, maintain a valid public liability insurance policy and a standard fire and perils insurance policy for the Premises for the full replacement value throughout the Lease Term, and shall furnish copies of such policies to the Lessor. Alterations and Fit-Out: No structural alterations without prior written consent. Non-structural fit-out permitted at Lessee's cost with prior written notice. All alterations to be restored to original condition on vacating unless waived in writing. The Lessee shall be permitted to display its corporate signage at locations approved in writing by the Lessor, and shall remove the same upon vacating the Premises.
7.
RENEWAL, TERMINATION AND DISPUTE RESOLUTION
The Lessee shall have an option to renew this Lease for a further term upon mutually agreed terms, provided the Lessee gives written notice of its intent to renew at least 3 months prior to the expiry of the Lease Term. Renewal shall be at the then-prevailing market rent, subject to mutual agreement. Either party may terminate this Agreement after the lock-in period by giving 3 months' written notice to the other party. Upon termination or expiry, the Lessee shall vacate the Premises in good condition (fair wear and tear excepted), return all keys, and remove all Lessee's fixtures and fittings. Any dispute arising out of or in connection with this Agreement shall be referred to arbitration under the Arbitration and Conciliation Act, 1996 ("ACA 1996"), with the seat and venue of arbitration at Mumbai, Maharashtra. This Agreement shall be governed by the laws of the Republic of India and subject to the jurisdiction of the courts at Mumbai, Maharashtra.
8.
GENERAL PROVISIONS
Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings. Amendment: No modification shall be valid unless in writing and signed by authorised representatives of both parties. Severability: If any provision is found invalid, the remaining provisions shall continue in full force. Notices: All notices shall be in writing and delivered by registered post or email with acknowledgement to the addresses set out above. Force Majeure: Neither party shall be liable for failure to perform due to causes beyond its reasonable control, including acts of God, war, pandemic, or government orders, provided prompt notice is given. Stamp Duty: Stamp duty on this Agreement under the applicable State Stamp Act shall be borne as mutually agreed between the parties, prior to registration.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
LESSOR / LANDLORD
Sharma Properties Private Limited
Date: ____________________
LESSEE (AUTHORISED SIGNATORY)
Rohan Mehta, Director
TechVenture Solutions Private Limited
Date: ____________________
WITNESS 1
Date: ____________________
WITNESS 2
Date: ____________________

What Is a Commercial Lease Agreement in India?

A Commercial Lease Agreement is a written contract between a landlord (lessor) and a business tenant (lessee) for the rental of commercial premises — such as office space, retail shops, warehouses, factory sheds, or industrial land — in India for business purposes. Unlike a residential lease, a commercial lease is typically not subject to rent control protection under state Rent Control Acts (most Indian Rent Control Acts specifically exclude commercial properties from their protective provisions). This makes a commercial lease more freely negotiable in India, with market rent and terms determined by agreement.

Commercial leases in India are primarily governed by the Transfer of Property Act 1882, which defines the rights and obligations of the lessor and lessee, including the lessee's right to peaceful possession, the lessor's right to rent, and the provisions for renewal and termination. Commercial leases in India typically run for three to nine years (with renewal options), and lock-in periods during which neither party can terminate are standard for major commercial tenancies. Rent escalation clauses (typically 5–15% annually) are common and enforceable. Where the commercial property is a new commercial building under RERA (Real Estate Regulation and Development Act 2016), RERA registration requirements may apply.

GST at 18% applies to commercial rent under the CGST Act 2017 when the landlord is a GST-registered person. The tenant can claim input tax credit (ITC) on the GST paid on commercial rent if the property is used for business purposes. Stamp duty and registration are mandatory for commercial leases exceeding one year under the Registration Act 1908 and the applicable state Stamp Act. The stamp duty on a commercial lease in India is typically applied on the total rent payable over the lease term and varies significantly by state. In high-value commercial markets such as Mumbai, Delhi, Bengaluru, and Hyderabad, stamp duty and registration charges on commercial leases can be substantial.

What's Covered in This Commercial Lease Agreement Template

Our India-specific Commercial Lease Agreement template covers all essential provisions for a legally sound commercial tenancy.

Parties & Property Details

Identifies the landlord and tenant with full legal names, addresses, and CIN (for companies), and describes the leased premises with Survey/CTS number and area.

Lease Term & Renewal

Specifies the lease term, commencement date, renewal options, and any lock-in period during which termination is restricted.

Rent & GST

States the monthly rent in ₹, escalation schedule (typically 5–15% per annum), GST at 18% under the CGST Act 2017, and rent payment due dates.

Security Deposit

Specifies the security deposit amount, conditions for refund, and the landlord's right to deduct for unpaid rent or damage.

Permitted Use

Restricts use of the premises to the specified commercial purpose and prohibits hazardous, illegal, or residential use.

Maintenance & Repairs

Allocates responsibility for interior maintenance (tenant) and structural repairs (landlord) in accordance with the Transfer of Property Act 1882.

Fit-Out & Alterations

Sets conditions for tenant fit-out, alterations, and reinstatement at the end of the lease — a common source of disputes in Indian commercial leases.

Utilities & Common Area Charges

Addresses responsibility for electricity, water, common area maintenance (CAM) charges, and other outgoings for the leased premises.

Lock-In Period

Specifies the lock-in period during which neither party may terminate without paying a break penalty — standard for prime commercial leases in Indian cities.

Stamp Duty & Registration

Notes the obligation to pay stamp duty and register the lease deed at the Sub-Registrar's office under the Registration Act 1908 and the applicable state Stamp Act.

Termination & Eviction

Sets out notice requirements for termination, grounds for eviction, and the procedure for recovering possession of commercial premises in India.

Dispute Resolution

Includes an arbitration clause under the Arbitration and Conciliation Act 1996 for resolving commercial lease disputes efficiently.

How to Create a Commercial Lease Agreement in India

Follow these steps to prepare a legally compliant commercial lease for Indian premises.

  1. 1

    Negotiate Key Commercial Terms

    Agree on the rent, escalation rate, security deposit (typically 3–12 months' rent for commercial properties in India), lease term, lock-in period, and renewal options before drafting.

  2. 2

    Verify the Property Title

    Conduct due diligence on the landlord's title to the commercial property — check the sale deed, encumbrance certificate, and occupancy certificate. For RERA-registered properties, verify on the RERA portal.

  3. 3

    Draft the Lease Deed

    Prepare the lease deed covering all commercial terms, including GST obligations, permitted use, maintenance, and termination provisions.

  4. 4

    Pay Stamp Duty & Register

    Calculate and pay the applicable stamp duty under the state Stamp Act. Register the lease deed at the Sub-Registrar's office under the Registration Act 1908. Both landlord and tenant must be present (or represented by a PoA holder) at registration.

  5. 5

    Obtain Handover Documentation

    Document the condition of the premises at handover — photographs, condition report — to establish the baseline for reinstatement obligations at the end of the lease.

Legal Considerations for Commercial Leases in India

These are the key Indian legal requirements for commercial property leasing.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified Indian advocate or legal practitioner for advice specific to your situation.

Reviewed for Indian law

Transfer of Property Act 1882

The Transfer of Property Act 1882 governs leases of immovable property in India. It defines the rights and duties of lessors and lessees, including the lessee's right to peaceful possession, the lessor's right to rent, and the procedure for termination. The Act requires a written deed for leases exceeding one year, and such leases must be registered under the Registration Act 1908. An unregistered lease for over one year is inadmissible as evidence of the lease terms in Indian courts.

GST on Commercial Rent

Under the CGST Act 2017, renting of commercial premises by a GST-registered landlord attracts GST at 18%. The landlord must charge GST on rent invoices and file GST returns. The tenant (if registered for GST) can claim ITC on the GST paid on commercial rent. RCM (Reverse Charge Mechanism) applies in certain cases where the landlord is unregistered. Residential property rented to businesses also attracts GST under certain conditions.

Stamp Duty & Registration

Commercial leases exceeding one year must be registered under the Registration Act 1908. Stamp duty is calculated on the total rent payable over the lease term (and sometimes also on the security deposit) under the applicable state Stamp Act. Rates vary significantly by state. An unregistered lease of over one year is inadmissible as evidence of the lease terms in Indian courts, though it may be admitted for collateral purposes.

Eviction of Commercial Tenants

For commercial properties not covered by state Rent Control Acts, eviction on expiry of the lease term or for breach of lease conditions is governed by the Transfer of Property Act 1882. The landlord must give proper notice under Section 106 of the TPA and, if the tenant refuses to vacate, must file an eviction suit before the civil court. Indian courts typically take several years to decide eviction suits, making commercial leases with strong break and termination provisions important.

Frequently Asked Questions

Create Your Indian Commercial Lease Today

Use Doxuno's free Commercial Lease Agreement template to establish a professional commercial tenancy in India. Covers GST, stamp duty, registration, and all essential Indian property law provisions.

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