When you scrap a vehicle at a registered facility, you get a Certificate of Deposit. Use it on your next vehicle and it cuts the road tax and the registration fee.
In short
- The scrapping facility issues it when your vehicle is handed over, and records it on VAHAN.
- In Chandigarh and Punjab it takes up to 25% off motor vehicle tax on a new private vehicle, and up to 15% on a transport vehicle.
- Get it before the new vehicle is registered. It can’t be applied afterwards.
What it is
A Certificate of Deposit is issued by a government-registered vehicle scrapping facility (RVSF) when you hand over your vehicle for scrapping. It’s recorded on VAHAN, the national vehicle database. Once the vehicle is dismantled, the facility also issues a Certificate of Vehicle Scrapping.
An informal scrap dealer can’t give you either certificate.
What it gets you, state by state
| Where the new vehicle is registered | Private vehicle | Transport vehicle |
|---|---|---|
| Chandigarh | 25% off motor vehicle tax | 15% off |
| Punjab | Up to 25% off motor vehicle tax | Up to 15% off |
| Haryana | Haryana’s own scrappage scheme. We confirm the current terms before you scrap. | |
| Delhi, Himachal Pradesh and Uttar Pradesh | Each state sets its own concession. We confirm the current terms before you scrap. | |
In Chandigarh, the scrapped vehicle has to be at least 15 years old, and the new vehicle has to be in the same category and class as the one you scrapped.
On top of the tax concession, the registration fee is waived on a new vehicle registered against the certificate. Some carmakers and dealers also offer an extra discount, so ask when you book.
How to use it
- Scrap your old vehicle and keep the Certificate of Deposit.
- Tell the dealer you have a certificate when you book the new vehicle.
- The certificate is entered when the new vehicle is registered, and the concession is applied there.
Order matters. Get the certificate before the new vehicle is registered. It can’t be applied after the registration is done.
Questions about the certificate
Who issues the Certificate of Deposit?
The government-registered vehicle scrapping facility (RVSF) that receives your vehicle. It’s recorded on VAHAN, so the RTO and dealers can check it.
Can I use it in a different state?
Yes. The certificate is valid across India. The concession you get depends on the rules of the state where the new vehicle is registered.
I’m not buying a vehicle soon. Is the certificate wasted?
Not necessarily. Certificates can be transferred to someone who is buying. Ask us and we’ll explain how that works for your certificate.
Is the Certificate of Deposit the same as the Certificate of Vehicle Scrapping?
No. You get the Certificate of Deposit when the vehicle is handed over. The Certificate of Vehicle Scrapping comes later, once the vehicle has actually been dismantled.
Based on the Chandigarh notification of April 2023 and the Punjab Cabinet decision of January 2023. States change these rules, so we confirm what applies to you before you scrap.