Car Excise Duty & Road Tax Exempt for Persons with Disabilities

Guidelines for Issue of an excise duty concession certificate on purchase of cars by the Persons with Disabilities

Downloads

1. Certificate to be issued by road transport officer of state road transport authority (PDF, 668KB)
2. Sample copy of self certification for availing excise duty concession certificate (PDF, 38KB)
3. Guidelines – excise duty concession certificate( PDF, 2MB)
4.  Circular No :12/15/2012-AEI  – Sample copy of self certification for availing excise duty concession certificate
5. Amendment Notification – S.O. 1468(E) – 21st April, 2016(PDF, 1.1MB)
6. Amendment Notification – S.O. 1643(E) – 2nd May, 2016 (PDF, 1.2MB)
7.  IMT – Indian Motor Insurance Tariff ( GR.16, GR.33 and IMT –12 ) – (PDF, 1.7MB)
8.  Toll Plaza Exemption – National Highways Fee
   (Determination of Rates and Collection) Amendment Rules, 2016 (PDF, 80.2KB)
9.  Toll Plaza Exemption – National Highways Fee Circular (PDF,178KB)
10. Maruti  Guidelines ( excuse duty ) – left leg disability (PDF, 1.6MB)
11. Court Complainant – from Dr Satendra Singh Coordinator, Enabling Unit (PDF, 63KB)
12. Citizen Charter- Dept of Heavy Industry ( PDF 128 KB)

Guidelines:

The guidelines for issue of an excise duty concession certificate on purchase of cars by the physically handicapped persons was first brought to the notice of the Public at large by this Department’s letter no. 12(18)/98-AEI dated 19th June 1998 which is placed at Annexure-I ( page no : 3 in the attached pdf). The guidelines is summarized as under:

1. 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%
   • (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.
2.  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 .
3.  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 medical certificate from the Medical Officer of a Government Hospital, as per the prescribed proforma. (placed at annexure-II ( page no: 5 in attached PDF file )).
   • 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 ( page no : 8 in the attached PDF file)).
   • 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.
4. The application from the physically handicapped persons, duly meeting the above requirements may be sent to the following:-
   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.
5. The Processing of such application is expected to take about 4 weeks

Excise Duty Concession Certificate for purchase of vehicles by Persons with Disability.

Amendment Notification Downloads

1. Amendment Notification on April 2016 (PDF, 1MB)
2. Amendment Notification on May 2016 (PDF, 1MB)

Insurance Concession IMT

GR.16 Minimum Premium

The minimum premium applicable for vehicles specially designed or modified for use of the blind, handicapped and mentally challenged persons will be Rs.25/- per vehicle. For all other vehicles, the applicable minimum premium per vehicle will be Rs.100/-.

GR.33

In case of vehicles specially designed / modified for use of blind, handicapped and mentally challenged persons, a discount of 50% may be allowed on the Own Damage premium in respect of both privately owned vehicles and vehicles owned and used by institutions engaged exclusively in the services of the blind, handicapped and mentally challenged persons. The discount is to be allowed only in respect of such vehicles, which have been suitably endorsed in the Registration Certificate by the RTA concerned.
Endorsement IMT –12 is to be used.

7. (iv) Schedule of Premium

A three wheeler designed for operation by physically handicapped persons should be rated as a two wheeler with side car.

IMT -12 Discount

Notwithstanding anything to the contrary contained in the policy it is hereby understood and agreed that the vehicle insured being specially designed /modified for use of blind, handicapped and mentally challenged persons and suitable endorsement to this effect having been incorporated in the Registration Book by the Registering Authority, a discount of 50% on the Own Damage premium for the vehicle insured is hereby allowed to the insured.
Subject otherwise to the terms exceptions conditions and limitations of the policy.

India Motor Tariff ( PDF , 1MB)

Toll Tax Exemption

Gazette notification of National Highways Fee (Determination of Rates and Collection) Amendment  Rules, 2016 dated 8th June 2016.

NHAI Circular No.NHAI/CO/11//2016 dated 13th June on the subject “Amendment to fee rules (Notification No. GSR 585E dated 8 June 2016 on exemption from payment of user fee in case of a mechanical vehicle specially designed and constructed for use of a person suffering from some physical defect or disability”

References : 

1.  Toll Plaza Exemption – National Highways Fee
   (Determination of Rates and Collection) Amendment Rules, 2016 (PDF, 80.2KB)
2.  Toll Plaza Exemption – National Highways Fee Circular (PDF,178KB)

Court Case file regarding Excise Duty and others

1.  Grant driving licences to deaf persons  2011 – National Association of the Deaf (PDF, 148KB ) – ref http://lobis.nic.in/ddir/dhc/DMA/judgement/19-02-2011/DMA14022011CW108492009
2.  Case File Petition (MD)No.4482 OF 2008 and M.P.NO.1 OF  2008 regarding Driving Licences – R. Ramasamy
3.  Excise Duty refund – Vijay Raj Khariwal – PETITION NO.2697/2005
4. Times of India Article 

Last update on Feb 8, 2017