{"id":39938,"date":"2022-02-08T11:58:44","date_gmt":"2022-02-08T06:28:44","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=39938"},"modified":"2022-05-03T12:22:06","modified_gmt":"2022-05-03T06:52:06","slug":"rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up\/","title":{"rendered":"AVSF (Authorized Vehicle Scrapping Facility): How to set it up?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The demand for vehicle scrapping has been rising in tandem with the demand for new vehicles in India. Vehicle scrapping as a business model is worth considering because it has a lot of potential both in terms of revenue generation and sustainability. The vehicle scrapping facility or business is subjected to various legal implications in India. Filing Form 1 is one such requirement that is mandatory to make vehicle scrapping facility operational in India. This article shall disclose all the details regarding the same and also provide a briefing on eligibility criteria as cited under Motor Vehicles (Registration and Working of Vehicle Stripping Service) Rules, 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up\/#Eligibility_criteria_for_registering_or_setting_up_AVSF_in_India\" >Eligibility criteria for registering or setting up AVSF in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up\/#Mandatory_Application_Forms_for_Registering_or_Setting_up_AVSF\" >Mandatory Application Forms for Registering or Setting up AVSF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up\/#Noteworthy_Facts_Regarding_the_Application\" >Noteworthy\nFacts Regarding the Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up\/#Role_of_Vahan_database_for_Vehicle_Scrapper\" >Role\nof Vahan database for Vehicle Scrapper<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/rvsf-registered-vehicle-scrapping-facility-how-to-set-it-up\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_criteria_for_registering_or_setting_up_AVSF_in_India\"><\/span>Eligibility criteria for registering or setting up AVSF in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The State Government\/UT Government shall consider following eligibility criteria while granting approval to any AVSF making an application under clause 6: <\/em><\/strong><\/p>\n\n\n\n<p>A. The AVSF is owned by any legal establishment, be it an individual, company, society set up according to the applicable laws.<\/p>\n\n\n\n<p>B. The establishment must have the given documents:<\/p>\n\n\n\n<p>(i) Certificate of Incorporation (COI)<\/p>\n\n\n\n<p>(ii) GST registration<\/p>\n\n\n\n<p>(iii) PAN<\/p>\n\n\n\n<p><strong>Additionally, the entity: &#8211;<\/strong><\/p>\n\n\n\n<p>(i) Should have applied for or secured\napproval for CTE (consent to establish) from the respective SPCB<\/p>\n\n\n\n<p>(ii) Shall undertake to fulfill the\nunderlying technical requisites for accumulations and dismantling centers as\nper CPCB&#8217;s guidelines.<\/p>\n\n\n\n<p>(iii) Should have skilled workforce and\nrequired machineries to undertake de-pollution and dismantling activities in an\nenvironmentally responsible manner.<\/p>\n\n\n\n<p>(iv) Shall undertake to secure the\nrelevant quality certificates such as ISO 9001 ISO 14001 within a year of\ncommencement of operations. <\/p>\n\n\n\n<p>(v) Should have or facilitate an\nundertaking to secure CTO (consent to operate) from respective SPCB, within 6\nmonths from the commencement of operations<\/p>\n\n\n\n<p>(vi) Should undertake to adhere to the\nprovisions of relevant labor codes and all other norms as applicable.<\/p>\n\n\n\n<p>(vii) Shall provide proof relating to the\navailability of an apt useable area in the Orange category industrial zone of\nrespective state\/UT via ownership or agreement to sell or agreement for the\nlease of at least three years.<\/p>\n\n\n\n<p>(viii) Should be in possession of\nrelevant IT certificates as per clause 4 (2).<\/p>\n\n\n\n<p>(ix) Should render certified plant layout and the building plan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_Application_Forms_for_Registering_or_Setting_up_AVSF\"><\/span>Mandatory Application Forms for Registering or Setting up AVSF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Given are the mandatory application forms\nthat applicants need to file in given scenarios: <\/strong><\/p>\n\n\n\n<p><strong><em>Form-1A: Securing authorization for registering AVSF in the respective state<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Form 1: Obtaining authorization to establish AVSF in a particular state<\/em><\/strong><\/p>\n\n\n\n<p>Now let&#8217;s discuss the information that\nthe applicant needs to furnish in these forms<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Form-1A: Consent for establishing an authorized vehicle scrapping facility (<em>AVSF)<\/em><\/h3>\n\n\n\n<p>Mandatory enclosures under Form-1A (consent for establishing authorized vehicle scrapping facility)<\/p>\n\n\n\n<ul><li>Applicant\nname and location<\/li><li>Category\nof tyre i.e. L Vehicle, M Vehicle, N vehicle or others<\/li><li>Registration\nnumber<\/li><li>Security\ndeposit<\/li><li>Conditions\nproposed to catered such as Facility Inspection Due, First Test Audit Due, and\nundertaking are to be liquidated by, etc.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Form-1\n(Application to authorized Vehicle Scrapping Facility)<\/h3>\n\n\n\n<p>Form 1 seeks the following information\nfrom the applicant.<\/p>\n\n\n\n<ul><li>Confirmation\nof whether the application is for the issuance of a new or renewed license <\/li><li>Applicant&#8217;s\nname, address, contact details,<\/li><li>Company\nIdentification Number<\/li><li>PAN\nand GST details<\/li><li>Company\nstatus (whether it is private, society, partnership or trust)<\/li><li>MOA\nand AOA<\/li><li>National\nIndustrial Classification Code<\/li><li>Company&#8217;s\nexisting activities<\/li><\/ul>\n\n\n\n<p><strong><em>Plant particulars <\/em><\/strong><\/p>\n\n\n\n<ul><li>Location\n(map)<\/li><li>Area\nof the premises<\/li><li>Possession\nstatus<\/li><li>Address\nof the premises<\/li><li>Category\nof the industrial zone<\/li><li>Proposed\nundertaking that applicant wishes to undertake within the premises<\/li><li>Proposed\nCapital Structure<\/li><li>Proposed\nNo of Employees<\/li><\/ul>\n\n\n\n<p><strong><em>Space-related details<\/em><\/strong><\/p>\n\n\n\n<ul><li>Plant\nschematic reflecting operational and key areas<\/li><li>Earmarked\narea for storing a waste vehicle<\/li><li>Area\nfor sparing segregated scrap<\/li><li>Processing\narea<\/li><li>Designated\npremises within the facility for the temporary storage of automotive hazardous\nwaste<\/li><\/ul>\n\n\n\n<p>Provision for the area used for the safe\nmovement of spares, scrap, and waste products<\/p>\n\n\n\n<p><strong><em>Equipment available within the facility <\/em><\/strong><\/p>\n\n\n\n<p><strong><em>This section seeks confirmation regarding\nthe availability of the following equipments<\/em><\/strong><\/p>\n\n\n\n<ul><li>Certified\nde-polluting equipment<\/li><li>Certified\nde-risking equipment<\/li><li>Equipment\nrelated to worker&#8217;s safety occupational health<\/li><\/ul>\n\n\n\n<p><strong><em>Note: Applicant also needs to confirm the\npresence of Security certificates secured for IT system to ensure safe access\nto VAHAN database. <\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Confirmation about the CTE and CTO\ngranted by SPCB<\/em><\/strong><\/p>\n\n\n\n<p>In the section, the applicant needs to\nconfirm whether they have secured Consent to Establish and Consent to Operate\nfrom SPCB.<\/p>\n\n\n\n<p><strong><em>Application No for VAHAN Database<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Undertaking <\/em><\/strong><\/p>\n\n\n\n<p>Here, the applicant needs to make a\ndeclaration to confirm the obtainment of quality certifications such as ISO\n9001, 14001, etc., within one year of operation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Noteworthy_Facts_Regarding_the_Application\"><\/span>Noteworthy\nFacts Regarding the Application<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The concerned authority shall dispose of all registration applications within 60 days from the date of application filing.<\/li><li>Form-1A shall serve as a registration certification that will be granted after the successful validation of the application. <\/li><li>The processing fee is non-refundable in case of a canceled application. However, the authority shall revert the Earnest Money\/Bank Guarantee submitted by the applicant for the grant of registration.<\/li><li>The State or <strong>Union Territory<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Union_territory\"><strong>[1]<\/strong><\/a><\/sup> Government, from time to time, may amend eligibility norms to ensure sustainability, apt capacity, and environmental protection.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Vahan_database_for_Vehicle_Scrapper\"><\/span>Role\nof Vahan database for Vehicle Scrapper <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Vahan database is a government-driven\ndata repository of all registered vehicles in India.<\/p>\n\n\n\n<ul><li>The AVSF shall be rendered connectivity &amp; access to the said database of vehicle registration with secured credentials and shall be authorized;<\/li><\/ul>\n\n\n\n<ol><li>Post suitable entries relating to vehicle scrapping<\/li><li>Grant of Certificate of Deposit<\/li><li>Grant of Certificate of Scrapping<\/li><\/ol>\n\n\n\n<ul><li>The AVSF must have relevant IT security certificates to ensure safe access to the VAHAN database.<\/li><li>The AVSF shall be provided the relevant connectivity to validate the details of the vehicles produced for the purpose of scrapping with the database of the stolen vehicles held by local police and NCRB. Further, AVSF is also liable to perform such verification prior to scrapping a vehicle.<\/li><li>The AVSF shall undertake validation of the individual seeking vehicle scrapping to determine the authenticity of the vehicle owner or his authorized representative &amp; keep the copy of the same for the record for a mini. of six months.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>AVSF Application in Form 1 serves the applicants intending to avail <a href=\"https:\/\/corpbiz.io\/authorized-vehicle-scrapping-facility-avsf\"><strong>authorization for registered vehicle<\/strong><\/a> safety facility in India. Meanwhile, the form-1A is applicable to those who aim to obtain consent for setting up a new vehicle safety facility in India.<\/p>\n\n\n\n<p>The criteria to grant authorization to AVSF in India is somewhat hard to comply with, considering the requisites mentioned under the said Act. Thus, it would be prudent to seek expert advice on such a subject matter and then proceed accordingly. Corpbiz has a renowned name in the field of licensing and compliances. Feel free to connect with our professional just in case you grapple with complying with the above requirements.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/wps-certificate-who-needs-it-and-why\/\">WPS Certificate: Who needs it and Why?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The demand for vehicle scrapping has been rising in tandem with the demand for new vehicles in India. Vehicle scrapping as a business model is worth considering because it has a lot of potential both in terms of revenue generation and sustainability. The vehicle scrapping facility or business is subjected to various legal implications in [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":39945,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2093],"tags":[],"acf":{"service_id":"497"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":21161,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39938"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=39938"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39938\/revisions"}],"predecessor-version":[{"id":40414,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39938\/revisions\/40414"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/39945"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=39938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=39938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=39938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}