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I have two sharepoint web applications. In first one when I create a subsite I get these options to set user permissions for new sub site in the site creation form i.e.

enter image description here

In the second application I don't get this option. I have Office publishing feature enabled on both. I tried enabling/disabling Office enterprise features and standard features but nothing is working. Can someone give an idea of how to enable this on the second web application.

Thanks in advance.

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so in 2nd web application you don't get user permissions option at all ? or just not "Use unique permissions" and did you created both web applications with same settings ? – SharePointer Sep 3 '12 at 9:45
in the second application I don't get any of this option in screenshot. The applications were created by someone else and I don't know what settings were used. – Mujtaba Hassan Sep 4 '12 at 5:35
could be something related to managed path (that happens with site collections), not sure if it could happen to web applications though :), you can try creating new web applications and get yourself familiarize with settings and see if you can regenerate this situation unless someone else help you here :) – SharePointer Sep 4 '12 at 10:17
Just an idea is anonymous access enabled on te second web app? – Simon Doy Sep 4 '12 at 18:45

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