Registered Vehicle Scrapping Facility (RVSF) has initiated scrapping process

Certificate of Deposit to obtain tax concessions when purchasing a new vehicle

Approval from RTO will be eliminated for streamlining scrapping process further

Benefits related to decommissioned vehicles are currently being addressed as the state’s primary Registered Vehicle Scrapping Facility (RVSF) in Devanahalli has initiated the scrapping process.

As per media reports, an official from the state’s transport department acknowledged the ongoing effort to rectify the challenges hindering the provision of concession benefits to vehicle owners.

According to the Registered Vehicle Scrapping Policy of Karnataka, 2022, once a vehicle undergoes scrapping at the RVSF, its owner receives a ‘Certificate of Deposit’ (COD).

This certificate can then be utilized to obtain tax concessions when purchasing a new vehicle, along with other potential benefits that may be announced periodically.

The official emphasized the ongoing efforts to address the issues concerning the provision of concessions, ensuring a straightforward implementation of the tax concessions to minimize any confusion.

Under the current Registered Vehicle Scrapping Policy in Karnataka, for instance, if a vehicle owner has paid Rs 1 lakh in taxes, they are eligible to receive 25 percent of this amount as a concession when purchasing a new vehicle.

Furthermore, adjustments are expected to be made to the concession amounts for specific categories, such as two-wheelers registered before 1986, for which the Motor Vehicle Tax concession is currently set at Rs 500, and for Light Motor Vehicles registered before 1995, the concession stands at Rs 3,000.

These figures are anticipated to be revised slightly, and a standardized system will be introduced. Additionally, the requirement for old scrapped vehicle owners to obtain approval from their Regional Transport Office (RTO) will be eliminated, streamlining the process further, as per the official’s remarks.