Excise duty is a tax that is levied on goods produced or sold in the country. Excise duty is sometimes also called Central Value Added Tax (CVAT) because it is levied by the Central Government. If you want to buy a car, the regular excise duty on various model is stipulated between 16% to 24%. But if a person with disability wants to buy a car for herself — she can claim concession on excise duty.
Persons with orthopedic disability can buy car at a concessional rate of 8%.
Excise duty of 8% is applicable on cars:
- being able to be driven by the person with physical disability; or
- which has been suitably designed to be able to be driven by person with physical disability; or
- meant for persons with physical disability
Government of India issued a notification in this regard on 14 June 1999 and again in March 2007. In order to claim concession on car excise duty, a certificate needs to be produced to the car dealer.
How to Get Car Excise Duty Concession Certificate
This certificate is issued to the person with disability by the Ministry of Industry and Commerce. A Deputy Secretary or Director level official can issues this certificate.
Person with disability will have to submit the following documents to get this certificate:
- A certificate from a Medical Officer of a Government Hospital stating that the person is medically fit to drive the vehicle. Please note that this is not the disability certificate that you get as a proof of your disability. This certificate needs to be given by the doctor in a prescribed proforma. [Download Medical Certificate Proforma]
- A certificate from the car manufacturer stating that the person has booked a car for purchase. The certificate also states that the car has been appropriately modified and/or fitted with additional gadgets to make it suitable for driving by the said person with disability. [Download Manufacturer’s Certificate Proforma]
- An affidavit by the person with disability stating that she has not availed concession on car Excise Duty in last five years and that she will not sell off the car being purchased with the concession in next five years.
Application for the Excise Duty Concession along with the above three documents should be sent to the following address:
The Under Secretary (AEI Section)
Ministry of Heavy Industries & Public Enterprises,
Department of Heavy Industry,
Room No. 384, Udyog Bhawan,
You may expect a reply from the Ministry in about one month. Once you get the certificate from the Ministry, you can produce it to the dealer to avail the concessional rate.
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