Smooth drive ahead: VAT exemption on vehicle purchased from canteens in Uttarkhand

The Uttarakhand government has decided to give VAT exemption on purchase of vehicles through CSD canteens. The state government was till now charging VAT at the rate of 12.5 per cent on the purchase of vehicles.

However, the cabinet made it clear, yesterday that the exemption would be given on purchase of a total of 500 vehicles-- 150 four-wheelers costing upto Rs 5 lakh and 350 two-wheelers with value upto Rs 70,000-- per year on the basis of first come-first serve. Meanwhile, a government agency for welfare of serving and retired army personnel, Sainik Kalyan Parishad today thanked Chief Minister Ramesh Pokhariyal Nishank for the step. "Since Uttarakhand is home to scores of serving and retired army personnel and officials, this is a welcome decision taken by state cabinet decision," Col (retd) P D Kudiyal, Vice Chairman of Sainik Kalyan Parishad said in a statement here.