-------------------------------------------------- DRAFT FOR ATTORNEY REVIEW ONLY — NOT LEGAL OR FINANCIAL ADVICE IMPORTANT: The Lessee must arrange comprehensive motor insurance with minimum IDV of INR 8,00,000 and the Lessor noted as an interested party before taking possession of the Vehicle. This document is a structured preparation draft only. GST treatment of vehicle lease payments as a service under the CGST Act 2017 and applicable rate for a private individual lessor, TDS applicability on monthly lease rent payments under the Income Tax Act 1961 India, whether hypothecation or a security interest registration is required for a private individual vehicle lessor under the Motor Vehicles Act 1988 India to protect the Lessor's ownership interest, Consumer Protection Act 2019 India compliance for security deposit deduction provisions and early termination penalty enforceability, Digital Personal Data Protection Act 2023 India compliance for collecting and processing Lessee passport and contact data, Indian Contract Act 1872 enforceability of the early termination penalty formula and repossession right provisions, and Force Majeure clause enforceability under the Indian Contract Act 1872 must all be confirmed with a qualified Indian attorney and chartered accountant before this agreement is signed. -------------------------------------------------- VEHICLE LEASE AGREEMENT — DRAFT FOR ATTORNEY REVIEW Document Ref: VLA-2026-001 Date of Preparation: June 1 2026 LESSOR: Ravi Sharma Address: [Full address], Mumbai Maharashtra India Contact: [phone] Email: [email] LESSEE: Deepak Verma Address: [Full address], Mumbai Maharashtra India Contact: [phone] Email: [email] Driver's License: [DL number] Vehicle: 2022 Honda City ZX CVT Lease Start Date: ______________________ Effective Date: ________________________ 1. RECITALS 1.1 Ravi Sharma is the registered owner of a 2022 Honda City ZX CVT bearing Registration MH02-[number] and wishes to lease the vehicle to the Lessee for the agreed term while retaining full legal ownership throughout. 1.2 Deepak Verma is an adult individual based in Mumbai Maharashtra India who wishes to lease the Vehicle from Ravi Sharma for personal daily commute use on the terms of this agreement. 1.3 Both parties confirm their mutual intent to document this vehicle lease arrangement on the terms set out in this agreement. 2. DEFINITIONS 2.1 Lessor: Ravi Sharma, the registered owner and Lessor of the Vehicle. 2.2 Lessee: Deepak Verma, the person leasing and using the Vehicle under this agreement. 2.3 Vehicle: The 2022 Honda City ZX CVT described in Section 4. 2.4 Lease Term: The 12-month period from the Lease Start Date to the Lease End Date as stated in Section 5. 2.5 Monthly Payment: INR 18,000 per month payable by the Lessee to the Lessor as described in Section 6. 2.6 Security Deposit: The refundable INR 54,000 deposit described in Section 7. 2.7 Mileage Cap: 15,000 kilometres for the full Lease Term as described in Section 8. 2.8 Excess Mileage Charge: INR 8 per kilometre over the Mileage Cap as described in Section 8. 2.9 Permitted Use: Personal daily commute use within Maharashtra as described in Section 11. 2.10 Early Termination: Ending the Lease before the Lease End Date as described in Section 12. 2.11 Default: Any breach entitling the Lessor to terminate as described in Section 13. 2.12 Governing Law: Laws of Maharashtra India. 3. VEHICLE DESCRIPTION 3.1 The Vehicle leased under this agreement is: Make and Model: Honda City ZX CVT Year of Manufacture: 2022 Color: White VIN: MAKGM5640NL123456 Registration Number: MH02-[number] Engine: Petrol 1498cc Odometer at Lease Start: 8,200 km 3.2 The Lessor retains full legal ownership of the Vehicle throughout the entire Lease Term. This agreement does not transfer ownership to the Lessee at any point. 3.3 The Vehicle is handed over in good roadworthy condition with both original keys, current insurance certificate, and RC book copy at Lease Start. 4. LEASE TERM AND COMMENCEMENT 4.1 The Lease Term commences on the Lease Start Date stated above and continues for 12 calendar months ending on the Lease End Date. 4.2 At the end of the Lease Term the Lessee must return the Vehicle to the Lessor at the Lessor's address unless both parties agree in writing to renew the lease on mutually agreed terms. 4.3 There is no automatic renewal. Any renewal requires a new written agreement signed by both parties. 5. MONTHLY LEASE PAYMENT 5.1 The Lessee agrees to pay the Lessor a monthly lease payment of INR 18,000 on or before the 5th day of each calendar month. 5.2 Payment is by UPI or NEFT to the Lessor's nominated bank account. Payment confirmation must be shared with the Lessor. 5.3 Late payment beyond the 5th of the month will attract a late payment charge of INR 500 per week of delay. 5.4 Two consecutive missed monthly payments constitute a Default under Section 13 of this agreement. 5.5 Note: GST treatment of monthly vehicle lease payments under the CGST Act 2017 including applicable rate, whether the Lessor is required to register for GST, TDS on rent payments under the Income Tax Act 1961 India, and income tax treatment of lease rental income for the Lessor must be confirmed with a qualified Indian chartered accountant before this agreement is used. 6. SECURITY DEPOSIT 6.1 The Lessee pays a refundable Security Deposit of INR 54,000 equal to three months' rent before taking possession of the Vehicle. 6.2 The Security Deposit will be returned within 14 days of the Lease End Date or date of Vehicle return subject to a satisfactory inspection. 6.3 The Lessor may deduct from the Security Deposit: 1. Any unpaid monthly lease payments. 2. Excess mileage charges calculated at the rate in Section 8. 3. Reasonable cost of repairing damage beyond fair wear and tear identified at the return inspection. 4. Cost of replacing any missing items such as keys or documents. 6.4 If deductions exceed the Security Deposit the Lessee remains liable for the additional amount. 6.5 Note: Security deposit deduction enforceability under the Indian Contract Act 1872 and Consumer Protection Act 2019 India must be confirmed with a qualified Indian attorney. 7. MILEAGE CAP AND EXCESS CHARGE 7.1 The total permitted mileage for the 12-month Lease Term is 15,000 kilometres. 7.2 The odometer reading at Lease Start is 8,200 km. The permitted odometer reading at return is therefore a maximum of 23,200 km. 7.3 Any kilometres driven beyond the Mileage Cap will be charged at INR 8 per kilometre calculated from the odometer reading at return. 7.4 The Lessee is strongly advised to monitor the Vehicle's odometer throughout the Lease Term to avoid excess mileage charges at return. 7.5 Note: The Mileage Cap and Excess Mileage Charge are commercially critical terms of this lease. The Lessee must clearly understand the per-kilometre charge before signing. Enforceability under the Consumer Protection Act 2019 India must be confirmed with a qualified Indian attorney. 8. LESSEE INSURANCE OBLIGATIONS 8.1 The Lessee must maintain valid comprehensive motor vehicle insurance covering the Vehicle throughout the entire Lease Term with: 1. Minimum Insured Declared Value IDV of INR 8,00,000. 2. Ravi Sharma named as an interested party on the insurance policy. 3. Third-party liability coverage as required by the Motor Vehicles Act 1988 India. 8.2 The Lessee must provide proof of valid insurance to the Lessor before taking possession and on renewal of the insurance policy at any point during the Lease Term. 8.3 Failure to maintain valid insurance constitutes a Default under Section 13. The Lessor may immediately suspend the Lessee's use of the Vehicle until valid insurance is confirmed. 8.4 Note: Minimum motor insurance requirements under the Motor Vehicles Act 1988 India and the process for noting the Lessor as an interested party on a third-party motor insurance policy must be confirmed with a qualified Indian attorney and insurance advisor. 9. LESSEE MAINTENANCE OBLIGATIONS 9.1 The Lessee is responsible throughout the Lease Term for: 1. All fuel costs. 2. Engine oil, coolant, and fluid top- ups between scheduled services. 3. Replacement of tyres when worn to the legal minimum tread depth. 4. Replacement of wiper blades and other consumable items. 5. Scheduling and paying for all periodic servicing at Honda authorized service intervals as specified in the vehicle service booklet. 9.2 The Lessee must not modify the Vehicle in any way including changes to the engine, bodywork, wheels, audio system, or any other component without the Lessor's prior written consent. 9.3 The Lessee must present the Vehicle for any recall or safety inspection notified by the manufacturer. 9.4 Note: Motor Vehicles Act 1988 India roadworthiness and maintenance obligations for vehicle users on public roads must be confirmed with a qualified Indian attorney. 10. PERMITTED USE 10.1 The Vehicle is leased to Deepak Verma for personal daily commute use only within the State of Maharashtra. 10.2 The following uses are strictly prohibited without the prior written consent of the Lessor: 1. Subletting or transferring the lease to any third party. 2. Permitting any person other than Deepak Verma to drive the Vehicle. 3. Using the Vehicle for any commercial purpose including taxi, cab, food delivery, or courier service. 4. Driving the Vehicle outside Maharashtra. 5. Using the Vehicle in any motor sport, racing, or off-road activity. 10.3 Breach of Permitted Use provisions constitutes a Default under Section 13 and may void the Lessee's insurance coverage. 10.4 Note: Motor Vehicles Act 1988 India requirements for additional driving license endorsements for commercial use vehicles must be confirmed with a qualified Indian attorney. 11. EARLY TERMINATION 11.1 The Lessee may terminate this lease before the Lease End Date by providing the Lessor with a minimum of 2 calendar months' written notice. 11.2 On early termination the Lessee is required to pay: 1. All monthly payments due up to the end of the 2-month notice period. 2. An early termination penalty equal to 2 months' Monthly Payment being INR 36,000. 11.3 The Lessor may deduct the early termination penalty from the Security Deposit if unpaid. 11.4 The Lessor may terminate this lease early in the event of Default as described in Section 13. 11.5 Note: Early termination penalty enforceability under the Indian Contract Act 1872 and Consumer Protection Act 2019 India must be confirmed with a qualified Indian attorney. Excessive penalty clauses may be unenforceable as a penalty rather than a genuine pre-estimate of loss. 12. LESSOR DEFAULT REMEDIES AND REPOSSESSION 12.1 Each of the following constitutes a Default under this agreement: 1. Failure to pay two or more consecutive monthly lease payments. 2. Failure to maintain valid comprehensive insurance. 3. Unauthorized subletting or commercial use of the Vehicle. 4. Abandonment of the Vehicle. 5. Serious damage to the Vehicle through the Lessee's negligence. 12.2 On Default the Lessor may: 1. Issue a written notice of Default requiring remedy within 7 days. 2. If the Default is not remedied, terminate the lease immediately. 3. Take possession of the Vehicle from the Lessee's address on reasonable notice. 12.3 Note: The Lessor's right of repossession without court order for a lease agreement under the Indian Contract Act 1872 and Consumer Protection Act 2019 India must be confirmed with a qualified Indian attorney before this clause is relied upon. Forced entry or repossession that breaches the peace may expose the Lessor to liability. 13. END-OF-LEASE RETURN 13.1 At the end of the Lease Term the Lessee must return the Vehicle to the Lessor at the Lessor's address in Mumbai. 13.2 The Vehicle must be returned: 1. In a clean and roadworthy condition. 2. With all original keys and documents. 3. With fair wear and tear accepted. Fair wear and tear means minor surface scratches, minor interior wear, and small stone chips consistent with normal use over 12 months. 13.3 Damage beyond fair wear and tear including dents, deep scratches, torn upholstery, cracked glass, and mechanical damage caused by the Lessee will be charged at reasonable repair cost deductible from the Security Deposit. 13.4 Odometer will be checked at return and any excess mileage over 15,000 km will be charged at INR 8 per km. 14. DAMAGE AND LIABILITY DURING LEASE 14.1 The Lessee is fully responsible for all damage to the Vehicle during the Lease Term caused by the Lessee, any authorized user, or any third party involved in an accident with the Vehicle. 14.2 The Lessee must notify the Lessor of any accident, theft, or significant damage to the Vehicle within 24 hours of the incident. 14.3 The Lessor is not liable for any third-party claims arising from the Lessee's use of the Vehicle or the Lessee's own negligence while operating it. 14.4 Note: Third-party liability under the Motor Vehicles Act 1988 India and the interaction between the Lessee's insurance and the Lessor's ownership liability must be confirmed with a qualified Indian attorney. 15. SECURITY INTEREST REGISTRATION 15.1 The Lessor may choose to register a hypothecation or security interest against the Vehicle's RC book to protect the Lessor's ownership interest during the Lease Term. 15.2 Note: Whether a private individual lessor is required or entitled to register a hypothecation entry under the Motor Vehicles Act 1988 India and the process for doing so at the Mumbai RTO must be confirmed with a qualified Indian attorney. 16. DATA PROTECTION AND PRIVACY 16.1 Both parties will handle each other's personal data including Aadhaar, PAN, driving license, and contact details only for the purposes of administering this vehicle lease, in accordance with the Digital Personal Data Protection Act 2023 India. 16.2 Neither party will share the other's personal data for commercial purposes. 16.3 Note: DPDP Act 2023 India compliance for vehicle lease agreements including consent requirements and data retention obligations must be confirmed with a qualified Indian attorney. 17. GOVERNING LAW AND DISPUTES 17.1 Laws of Maharashtra India and the Consumer Protection Act 2019 India govern this agreement. 17.2 Disputes proceed through direct negotiation then the Consumer Disputes Redressal Forum in Mumbai. 18. ENTIRE AGREEMENT 18.1 This agreement is the complete understanding. Any amendment requires written consent. SIGNATURE BLOCK: Note: Both parties must have this agreement reviewed by a qualified Indian attorney and chartered accountant before signing. GST on lease payments, TDS on rent, income tax on rental income, Consumer Protection Act 2019 India security deposit and early termination penalty compliance, Motor Vehicles Act 1988 India hypothecation registration, insurance minimum requirements, repossession right enforceability, DPDP Act 2023 personal data compliance, and Force Majeure enforceability under the Indian Contract Act 1872 must all be confirmed before signing. Ravi Sharma (Lessor) Signature: ________________ Date: ____________________ Deepak Verma (Lessee) Signature: ________________ Date: ____________________ Witness: ________________ Date: ____________________ -------------------------------------------------- This Vehicle Lease Agreement draft was generated by an AI drafting tool as a structured preparation and documentation aid only. It does not constitute legal, financial, or tax advice. The Lessor retains ownership throughout. GST and TDS obligations on lease payments must be confirmed with a qualified Indian CA. Always have this document reviewed by a qualified attorney before signing. --------------------------------------------------