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Monday, May 14, 2012

How to avail Road Tax Exemption for Adapted Car for Disabled

Dear friends,

So many of you have been asking me guidance on the process for availing concession on excise duty for differently abled on purchase of cars by the physically handicapped.

I wish to put down for your information that the Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Govt. of India has framed guidelines for issue of an excise duty concession certificate on purchase of cars by the physically handicapped person (read person with orthopedic disability). These are available at link: Guidelines of Department of Heavy Industries  

Back ground of Issue of Concession Certificates

The Ministry of Finance, Government of India, has allowed a concessional rate of excise duty of 8% as against the applicable rate of 16% and 24%

  1. On cars being able to be driven by the physically handicapped; or
  2. On cars which has been suitably designed to be able to be driven by physically handicapped; or
  3. on cars meant for physically handicapped.

The Notification issued by Ministry of Finance, inter alia stipulates that this concession can be claimed on if a Deputy Secretary/Director in the Ministry of Industry certifies that the vehicles is fit for use by the handicapped persons.

Guidelines for issue of Certificates

The Department of Heavy Industry has framed guidelines for issue of such certificates to the handicapped persons. As per the guidelines, the applicants are required to submit the following three documents, in original in the prescribed format.

(a) A medical certificate from the Medical Officer of a Government Hospital, as per the prescribed proforma. (Annexure-II - Click on the Annexure to obtain a pdf copy).
(b) A certificate from the manufacturer of a passenger car to the effect that a booking has been made with them and that the passenger car to be delivered to the handicapped person has specifically been designed or fitted with special control devices or gadgets, depending upon the type of disability of the person, such as auto transmission, grip assembly, accelerator pedals, hand control, etc. fitted in the depending upon whether the disability is in right/left arm or in both legs or in combination. (Specimen is placed at Annexure-III Click on the Annexure to obtain a specimen in pdf copy).
(c) An affidavit by the applicant, that he had not availed of this concession in the last 5 years and that he will not dispose of the cars with excise duty concession after purchase for a period of 5 years.
iv. The application from the physically handicapped persons, duly meeting the above requirements may be sent to the following wherein the processing of the application is expected to take about 4 weeks :- 

The Under Secretary (AEI Section)
Ministry of Heavy Industries & Public Enterprises,
Department of Heavy Industry,
Room No. 384, Udyog Bhawan,
New Delhi-110011.
Tel.No.2306 3347.

Experience of Mahesh Chandrashekhar who availed this concession

In this connection my colleague Mr. Mahesh Chandrashekhar who himself is a wheelchair user has shared his own experience on his facebook page on how he availed road tax exemption for his adapted hand operated Car. I thought this would be useful to many so I am reproducing the same here with his permission for the benefit of one and all. Here he goes:

  • "Firstly you need to get a 'disability certificate' from an orthopedic doctor from a Govt. Hosp. to specify your percentage of disability (preferably below 70% - the lesser the % the better, if the % is more you may not get your license – then you will end up with a car that you cannot drive) and the doctor has to specifically mention that he/ she can drive a hand operated car.
  • When you pay an initial deposit to purchase the car from the dealer, ask the dealer for the form for 'getting road tax exemption' (at least the Hyundai dealer on Residency Road Bangalore had one) - this form reads something like "Annexure I - certificate in respect of a orthopaedically disabled person regarding recommendation for a passenger car for purpose of excise concession (Para 240 of Central Govt. Notification No. 5/98-Central Excise dated 2.6.98)". You will need to fill this form and get the same signed by an orthopedic doctor from a Govt. Hospital.
  • Submit this form, the above mentioned disability certificate, a covering letter to the manufacturers and an Affidavit signed by a Notary (stating that you are a resident of the address given, truly disabled and that you have booked car for your personal use) to the dealer. (In my case the Salesperson from Hyundai helped me to make it all happen for a small fee).
  • The dealer will then send these 4 documents to the car manufacturer. After 10-15 days - the manufacturer gets some kind of approval from the Govt. of India and will send this letter to the dealer. The dealer then submits this approval letter to the local RTO for the next approval. Only then will you able to actually get road tax exemption.
  • The procedure is cumbersome, challenging, humiliating, humbling; but when it all does happen – where you are at most of the times operating from your wheelchair outside buildings - your belief in 'God' gets renewed - you truly become the child of God. By the way - I am one of the lucky souls to have succeeded this ordeal designed painstakingly by our bureaucracy."
Thanks Mahesh for sharing this information.

Subhash C Vashishth
Advocate-Disability Rights


indianist said...

Pls give some tips for ways to save tax, I pay lot of amout to as income tax pls help me.......

Swapna Dnk said...

My mother is physically handicapped. She bought an i10 automatic last month. The dealer said that the life tax is exempted and he reduced that price. We paid Rs. 3000 to the agent for registration. He made my mother visit rto office twice due to lack of knowledge. Then he said we need to pay Rs. 4000 to RTO officer to get the work done. We paid the cash on our second visit. Now after a month, when we are waiting for the RC book, the agent calls and tell that GO for the exemption of physically handicapped is cancelled and we need to pay the whole exempted price to get our RC book. Do anyone have any idea about this latest development? We are month sure whether its true or are the agent and RTO guys are playing cheap tricks. if anyone has the latest GO copy can you forward it to the following mail id.

Mohan M said...

I am a physically handicapped person and I called up a Hyundai showroom person (Residency road Bangalore)to enquire about road tax excemption but he said that this facility is withdrawn by the govt from 2013. Is it true? Can you please suggest me the next steps?

Thanks in advance

Abhishek Mittal said...

is this concession available for a visually impaired person. i will have the vehicle driven by my spouse. my disability percentage is seventy five

Abhishek Mittal said...

is this concession available for a visually impaired person. i will have the vehicle driven by my spouse. my disability percentage is seventy five

Active All said...

Please share some more tips related to this topic. It may help many disabled.

Active For All