Recently, we covered the scrap industry and the easy steps in which one can replace one's old commercial vehicle with a new edition and the benefits one can avail out of the move. Here is the link for the same:
https://www.youtube.com/watch?
Last year in August we came across the news of the Union Minister Nitin Gadkari to have been planning a major move against vehicles that are 15 years old and still running on Indian roads. He claimed that the implementation of this policy will bring about a profit of Rs. 14 thousand crores and a boost of almost 22% in the sales of the automobiles. The policy shall come under Voluntary Vehicle Fleet Modernisation Programme (V-VMP) which aims to provide an easy and profitable way to the owners to scrap old vehicle and switch to the cleaner and technologically improved automobiles of today's modernized times. if your vehicle is based on BS IV engine and is registered before or in April 2005, you can benefit from the policy.They proposed that any person who wishes to replace his old commercial vehicle with a new one can avail a discount of about 8-12% or a 50% rebate on excise duty which can be almost of Rs. 50,000 of discount on the purchase of a new car.
Recently, the scrapping policy has been moved to the desk of Committee of Secretaries for their approval after which the plan shall make its way to the nod of GST council. The latest addition to the policy is the relief of Rs. 5 lakh to the ones who are replacing their old vehicle with the new purchase of about Rs.15 lakhs or above. this will increase the revenue generation of automobile sector from Rs4.5 lakh crore to a jaw-dropping Rs. 20 lakh crore.
"We propose a discount of about Rs 2 lakh from manufacturers at the time of purchase while about Rs 2.5 lakh concession in taxes by state and central governments for those purchasing new commercial vehicle on surrender of old," Gadkari said, adding that tax concession would be based on GST Council decision.
