Commercial Rent / Lease Agreement Format (Shop, Office)
Draft a lease for a shop, office or other commercial premises, covering rent escalation, lock-in, GST and TDS on rent, and registration.
Law version: Up to FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
A commercial lease is a transfer of the right to use premises for business under the Transfer of Property Act, 1882, for a rent and a term. It differs from a residential rent agreement in its tax and commercial clauses: GST on rent, TDS by the tenant, lock-in periods, rent-free fit-out time, escalation every year or every few years, common area maintenance, and the tenant's licences and compliances.
When it is used
- Taking a shop, showroom, office or warehouse on rent.
- Renewing or re-documenting an existing commercial tenancy.
- Using rented premises as the principal place of business for GST or the registered office of a company.
What the template covers
- Lessor and lessee details, PAN and GSTIN
- Premises, carpet area, permitted use and fixtures
- Term, lock-in and notice after lock-in
- Monthly rent, due date, escalation and late-payment interest
- Security deposit and its refund
- GST and TDS on rent, maintenance and utilities
- Fit-out, repairs, compliances, holding over and disputes
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Agreement
Date of Agreement; Place of Execution; State where the Premises are situated; E-stamp Value (₹); Stamp Duty and Registration Borne By
Lessor (Landlord)
Lessor is; Lessor Name; Father's / Husband's Name (individual); Karta / Authorised Signatory (if not an individual); Address; PAN; GSTIN (if registered); Lessor GST Status; Residential Status; Lessor's Right to Let; Existing Mortgage / Charge (if any)
Lessee (Tenant)
Lessee is; Lessee Name; Father's / Husband's Name (individual); Karta / Authorised Signatory (if not an individual); Address / Registered Office; PAN; GSTIN
Premises
Address of the Premises; Carpet Area (sq. ft.); Description (floor, unit, boundaries); Permitted Use; Fixtures, Fittings and Parking Handed Over
Term and Rent
Lease Start Date; Term (months); Lock-in Period (months); Monthly Rent (₹, excluding GST); Rent Due by (day of month); Escalation (%); Escalation Every (months); Rent-free Fit-out Period (days); Interest on Late Payment (% p.a.); Security Deposit (₹); Deposit Paid By; Common Area Maintenance Paid By; Maintenance Charges (₹ per month); Notice Period after Lock-in (months); Renewal; Disputes
Witnesses
Witness 1 Name; Witness 1 Address; Witness 2 Name; Witness 2 Address
Stamp duty, registration and filing
A lease for more than one year must be by a registered instrument (Section 107 of the Transfer of Property Act and Section 17 of the Registration Act, 1908). In Delhi, stamp duty on a lease depends on the average annual rent and the term; check the current rate on the Delhi Revenue Department site (revenue.delhi.gov.in) before buying the e-stamp paper. GST at 18% applies on renting commercial property; where an unregistered landlord lets to a registered tenant, the tenant pays under reverse charge (Notification 09/2024-CT(Rate), from 10 October 2024), except tenants under the composition scheme. The tenant deducts TDS on rent: Section 194-I or 194-IB up to 31 March 2026 and Section 393 of the Income-tax Act, 2025 from 1 April 2026.
The TDS clause follows the start date of the lease: Sections 194-I / 194-IB / 195 of the Income-tax Act, 1961 for rent paid up to 31 March 2026, Section 393 of the Income-tax Act, 2025 from 1 April 2026. Stamp duty and GST rates should be confirmed on the date of execution.
Generate the Commercial Rent / Lease Agreement (Shop, Office)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows? Contact SKAG and Associates
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Frequently asked questions
Is an 11-month agreement enough for a shop?
Many parties use 11-month agreements to avoid compulsory registration, but a lease of more than one year must be registered. A longer registered lease gives both sides more certainty.
Is GST payable on commercial rent?
Yes, at 18%. A registered landlord charges it; where the landlord is unregistered and the tenant is registered, the tenant usually pays it under reverse charge.
When does the tenant deduct TDS on rent?
A business tenant deducts TDS at 10% on rent for land or building above the monthly threshold; individuals not liable to tax audit deduct 2% where rent exceeds ₹50,000 a month. Check the current threshold for the year.
What is a lock-in period?
A period during which neither side, or only one side, can end the lease. If the tenant leaves early, the agreement usually makes rent for the rest of the lock-in payable.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.