Monday, May 14, 2012

How to avail Excise Duty & Road Tax Exemption for Adapted Car for Disabled in India [updated 18June2016]

Dear friends,

I have been receiving several queries requesting guidance on the process for availing concessions on excise duty on purchase of cars by the persons with disabilities;  the Road Tax concessions allowed to persons with disabilities on registration of adapted vehicles (Invalid Carriages) and concession on insurance of such vehicles. 

The Govt. of India has changed guidelines after our colleague Dr. Satendra Singh challenged the same,  thereby replacing the manufacturer's certificate with the Certificate by the RTO or the State Transport Authority. Download the Gazette Notification dated 21 Aprl 2016 and the Addendum Notification dated 02 May 2016 containing the format of RTO Certificate. The details are also available on the website of Department of Heavy Industries at link:  Excise Duty Concessions to PWDs.

Excise Duty Concession on purchase of Cars by Disabled Persons

Ministry of Finance, Govt. of India vide its notification No. 06/2006-CE dated 1.3.2006 has exempted certain excisable goods [of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)] and at Sl No. 49 it exempts "Cars (for the transport of up to 7 persons, including the driver) for the physically handicapped persons, subject to the following conditions:
  1. an officer not below the rank of Deputy Secretary to the Govt. of India in the Deptt of Heavy Industries certifies that the said goods are capable of being used by the physically handicapped persons and 
  2. the buyer of the car gives an affidavit that he shall not dispose of the car for period of five years after its purchase.

The notification above allows a concessional rate of excise duty of 8% as against the applicable rate of 16% and 24% on the Cars :

  1. Being able to be driven by the physically handicapped; or
  2. Which has been suitably designed to be able to be driven by physically handicapped; or
  3. Meant for physically handicapped.

Guidelines for issue of Certificate for Excise Duty Concession

The 
Department of Heavy Industry, Ministry of Heavy Industries and 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).  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. (This has been modified vide notification dated 02nd May 2016, to save people with disabilities from the harassment by the car manufacturers and now a certificate from the RTO instead will suffice) Click here for the format of certificate to be issued by RTO or State Road Transport Authority.

(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.

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 and Public Enterprises,
Department of Heavy Industry,
Room No. 384, Udyog Bhawan,
New Delhi-110011.
Tel.No.2306 3347.


The necessary formats are available at link: Guidelines of Department of Heavy Industries .


Road Tax Concession

An exemption of (100%) in the road tax to be paid to the RTO, where the invalid carriage/ vehicle is registered, is allowed as per the feedback received from Karnataka from one of our blog follower Mr. Deepak KC.

Insurance Concession


A 50% discount is being given on insurance for a vehicle being specially designed/modified for a "blind, handicapped and mentally challenged person" as per IMT 12 (pages 183,184) of India Motor Tariff. Click here to download the IMT 12 (PDF, Size 1215.75KB)

External Website for additional information You could also visit Rights of Drivers with Disabilities penned by our colleague Dr. Satendra Singh for more details.

regards
Subhash C. Vashishth
Advocate-Disability Rights

26 comments:

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. swapnadnk@gmail.com

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
Rohith

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

Pankaj Sundrani said...

Dear Mr Subhash

We some handicap persons are having doubt that we need to pay TOLL TAX or NOT on TOLL BOOTH while traveling or driving the car (suitable for us).

Can you please clarify our doubt? also request you to provide any supporting document / notification for the same & enable all friendly to avail this benefit.

Subhash Chandra Vashishth said...

@Abhishek Mittal - Ideally the concession should be available to persons with visual impairments also, however, currently it is only available -
(a) On cars being able to be driven by the physically handicapped; or
(b) On cars which has been suitably designed to be able to be driven by physically handicapped; or
(c) on cars meant for physically handicapped.

Thus it is clear that it is only for physically handicapped and not visual or hearing disability. However, it doesn't stop you from representing to the Ministry - both Social Justice as well as Heavy Industry seeking inclusion of Visually impaired in the list of beneficiaries giving detailed justification. You never know it might be considered favourably!

Subhash Chandra Vashishth said...

@Abhishek Mittal - Ideally the concession should be available to persons with visual impairments also, however, currently it is only available -
(a) On cars being able to be driven by the physically handicapped; or
(b) On cars which has been suitably designed to be able to be driven by physically handicapped; or
(c) on cars meant for physically handicapped.

Thus it is clear that it is only for physically handicapped and not visual or hearing disability. However, it doesn't stop you from representing to the Ministry - both Social Justice as well as Heavy Industry seeking inclusion of Visually impaired in the list of beneficiaries giving detailed justification. You never know it might be considered favourably!

Unknown said...

Can anybody tell me whether this procedure has to be done by manufacture or applicant???
Also can anyone give me the format of affidavit???

harish2311 said...

Dear Mr. Subhash,
It is heartening to know that someone is fighting for the rights of the differently abled in the country. I hold an Invalid Carriage License which was issued to me in Alwal RTA, Secunderabad/Hyderabad. At the time of applying for license, I already had purchased an used Automatic Maruti Zen which was transferred to my name as a regular transfer, not as an Invalid Carriage vehicle. I gave my test drive for the permanent license in that car itself. Strangely, nobody asked me for a doctor's certificate told me the rules. Since my disability is not very severe, I dont need any modification in an Automatic or CVT vehicles to drive them. The few times that Traffic police were checking documents, they saw my driving license, saw that the car was automatic and said it was fine. Everything was fine until last year December. We had purchased a new Nissan Sunny CVT in Jan, 2014 from Lakshmi Nissan showroom in my wife's name. Nobody told us about the road tax waiver or that it has to be registered as an invalid carriage vehicle if I have to drive it, since my wife doesnt drive.
Unfortunately on 27th December, 2014 while I was coming from Nagpur to Hyderabad, while negotiating a bend, my front right tyre burst and the car toppled 3 times, fell on the other side of the divider and got completely damaged. Fortunately, since I have this habit of not starting the engine till I put my seat belt on, I was saved as the Air bags got deployed, otherwise I would have not survived. Since I had comprehensive Insurance through Future Generali, I applied for a claim with all documents like my license copy, RC copy, Police Panchnama, etc. Now the Insurance folks came to me in March, saying prove to us that you can drive the vehicle. Since then I have been running around in circles of the RTA asking them to endorse that I can drive the vehicle, but in vain. Nobody seems to be knowing what are the rules. They only say one thing, that I cannot drive a vehicle that has not been modified. But I DONT NEED AN AUTOMATIC CAR TO BE MODIFIED TO DRIVE IT. I have been driving since 9 years and have driven more than 2 lakh kilometers without any accident. Then this unfortunate thing happened.
Some of the questions I want to ask you:
1. How can the RTA deny that they cannot give me a letter that I can drive an automatic car when they themselves gave me the license which was an automatic car without any modifications. I have since sold my Zen Automatic car a few years ago, but surprisingly, the RTA doesnt have a record that during 2004-2010 the car was on my name. Very surprising.
2. I want to book a PIL keeping Apollo Tyres, Nissan, RTA and Future Generali as respondents for the mental anguish that I am going through. Will it help?
3. Is there a forum/organization/person/group who help people like us whom nobody bothers to care about?
4. Will you

Subhash Chandra Vashishth said...

Dear Harish,

Often the government system works like this. The officials despite being aware of the issue do not act since there is no precedent in their knowledge. Remember, a govt servant can be punished for doing something wrong or taking a wrong decision and there is no action against those who do not take a decision. So, why take a decision at all then!

This is to break. However, I need to know if your assessed disability is above 40% because then you become eligible to knock some forums for persons with disabilities.

If Yes, then I suggest you write a detailed representation to your State Commissioner for Persons with Disabilities detailing the difference between the invalid carriage and the automatic transmission car and how your disability doesn't interfere with your driving and how your rights are being infringed. The state commissioner on receipt of your grievance. The Commissioner may direct the district hospital to constitute a medical board and you may need to present yourself for disability assessment (functional) - often undertaken for employment purposes or for specific purposes as driving license.

Please do make use of the scanned copy of RC of the old car you sold off (in case you have one) to prove your point. If not, just refer to it. Commissioner can call for records from the RTO.

PIL at this juncture may not be the right idea. Explore other means and when these fail, you may consider a writ petition as this is your grievance.

Unknown said...

Dear Mr Subhash,
I am a case where I purchased an automatic car as I can drive it without any problem. I have 55 percent disability with my left lower limb affected by polio. I wanted the tax exemption during the purchase but was unable to get it as I want not having permanent DL. That time RTO said we cannot give you licence unless you have car on your name. Unfortunately they registered it as LMV and not invalid carriage. So I left the issue of tax exemption.
I WAS UNDER IMPRESSION FROM some reading that AUTO GEAR CAR can be treated as INVALID Carriage {IC}.

But recently when I visited RTO Nagole Hyderabad, I was told that I need to convert the registration from LMV to IC.
I understand that main loop hole here is whether AUTO GEAR CAR is treated as Invalid carriage or not. Where I can find this information. How to solve this problem of getting licence.
Actually i spent extra money for Auto gear car thinking that I need not modification. It looks that I will be forced to do so now.
This has been more common problem for all disabled like me.
I am thinking of RTI Or PIL. I would appreciate your advice.
Thanks and regards
PHB

Ramesh GP said...

Subhash Sir;
I sent a requisition to Maruthi Suzuki India Ltd for Manufacturer certificate, But they asking original Medical Certificate for issuing Manufacturer certificate. But i need original Medical certificate to send Heavy industries and Public Enterprises for excisen duty concession certificate. I already sent self attested Medical certificate to Maruti Suzuki india ltt.
What to do Sir

deepak dk said...

There are two kinds of exemptions.
1. Exemption (8% is applicable instead of 16% in general)in excise duty(applicable on the Exshowroom price of the vehicle)
Procedure explianed in the blog is for that.
Refer to http://enablingunit.yolasite.com/excise.php for details.
To my knowledge, Maruti has known procedure for this. Not sure of other auto makers.

2. Exemption(100%) in road tax to be paid to the RTO where the vehicle is registered.
To this effect(in karnataka state), vehicle will be registered as Invalid Carriage.
Usually if the vehicle requires any modification for use by the specially abled, it shall be done at the identified workshops.(Galaxy Systems in Bangalore is one such). In any case, meet the RTO before making a purchase to have a clear idea as how things will work out. Don't approach any Vehicle dealer, as nothing will help.

In my case (special ability: polio on left leg )an auto transmission vehicle(car without a clutch pedal) could be used by me without further modification. Still the RTO officer asks for modification. I am still in the process of getting it approved by the RTO.

Subhash Chandra Vashishth said...

Thank you Deepak DK for the update. My colleague Dr. Satendra had challenged the procedures that harassed the users and therefore, the Department of Heavy Industries have changed the procedures in April/May 2016. I have updated them for the benefit of readers. Let me know should you have any more comments to improve upon the content of the blog.

norang singh said...

Sir my name is norang mere pass automate car h or muje toll both pe road toll tax Dena padta h Kya koi concaction nahi handicapped ke leya

Alfri Sophana said...

Sir,

I am physically challenged person with disability in my right leg. I reside in Tamilnadu. I enquired maruti showroom. They rejected for me as I've the disability in my right leg. Now I came to know that a certificate from District RTO is enough for availing the concession.

I need some clarifications please.
1. It has been informed as per the guidelines that a medical certificate, a certificate from RTO and self explained certificate from me assuring that i'll not sell this car for 5 years.

But in the RTO certificate, it has been stated that the RTO has to certify as follows."After verification, it is certified that Shri/Smt./Ms...... Son/ Daughter/Wife of Shri......aged ....years residing at is capable of driving Car (Name of the Model) , which has been retrofitted according to his Physical (Orthopaedic) Disability.

But this certificate could be issued by RTO only after buying the car by me. so, while buying the car this excise duty could not be availed and whether I've to pay the full amount. Also, whether this concessional amount could be refunded to me after that. Kindly give me the detailed procedure please, sir.

Sophana
Tamilnadu

Raju Patil said...

What About VAT...?

jomey on wheels said...

Hi All, i am a physically challenged person from kerala... the road tax exemption which was available for us have been amended. Now in Kerala , only vehicles having a cost upto 5 Lakhs are only allowed road tax exemption.

Friends from Kerala are planning a campaign to fight for our rights ,otherwise few rights which we enjoyed earlier would be curbed as well.

rehna mohammed nizam said...

hello bhayya, aap ka ye jo effort hai, mutche bahuth pasand aaya. aap is tharah disabled ke liye atche kar'y bathathe rehna......

Unknown said...

Sir i have purchased my vehicle. Can i now claim the exemption

Amit Arora said...

Hi Subhash, First of all thanks for the great work you are doing towards the diffrently abled person. I bought an audi car and after a struggle of 9 months. I got my manufacturer certificate on the basis of which i got my excise duty exemption certificate issued from heavy industries and for the further procedure i have submitted my documents to my car dealer but the company is now refusing me and not helping me by any mean. They say its not there job and you have to do it yourself and i dont know the procedure now. Can you please help me with this as i am only left with 6 weeks to apply for same TIA regards Shroman Arora

Subhash Chandra Vashishth said...

@Jomey on wheels - I understand that Kerala Govt. has put a cap on the cost of vehicle for the purpose of excise duty. The cars above 5 lacs are not allowed tax exemption as they consider them as luxury vehicles! This has to be taken up with the Govt. systematically and I am sure this would be resolved soon when the govt. would be told about the high costs of adaptation and cars being used by those with disabilities.
@Rehna Mohammed Nizam - Thank you for your comments.

@Amit Arora - Yes, while you struggled for 9 months, the rules were changed. But since you have already set the ball rolling by having the required papers completed, it would be advisable to handle this last leg yourself. I don't know your location. For Delhi, Noida, the nearest office for submitting papers for excise duty is Gurgaon. Please ask the dealer if he knows the location or call up the office of the Under Secretary, Min. of Heavy Industries. Hope it helps.

Amit Arora said...

Hi Subhash, thanks for replying i am based in delhi ( mayur vihar) but my car manufacturer Audi india is in Pune and please also help me with the documents that have to be submitted and my car dealer is not helping me at all. Thanx

Unknown said...

Hi, sir i am physically handicapped by left leg...so i want to buy automatic transmission of Xcent but not getting manufactures's certificate...can I go through RTO certificate...? But how RT OFFICER will give me certificate as it is Automatic Transmission and not modified or retro fitted...and please tell me any other means to approch to manufacturer other than their dealers plz

Amit Arora said...

Hi sir , my car dealer is not helping at all i bought an Audi and their manufacturing unit is in Pune so do i have to submit them in pune and what all papers are required i went to excise duty department in ITO they also dont know the procedure please help me thanx waiting for your reply

Subhash Chandra Vashishth said...

@Unknown - You need to approach RTO with a copy of the new guidelines detailed and updated above. The Regional Transport Officer will give you the certificate based on your disability certificate & car type.

@AmitArora - The Car Dealer has no role now in giving you the certificate so you don't have to approach the dealer or the manufacturer at Pune. I feel that you may end up receiving your papers back saying that the rules have changed and the certificate from RTO must be obtained. (its easy to pass the buck?) Would you like to explore the RTO route as per new procedure?

Amit Arora said...

Hi Subhash, i already have the manufacturer certicate and letter from heavy industries now where i will have to submit all this paper.