The Transport Department, New Delhi, on October 18, 2024, issued notification regarding the Tax on registration of new Transport and Non-Transport Vehicles, against the Certificate of Deposit in favor of old vehicles handed over for scrapping at RVSF.
The Motor Vehicles Department has outlined tax concessions for the registration of new transport and non-transport vehicles when a Certificate of Deposit (COD) is provided, indicating that an old vehicle has been handed over for scrapping at a Registered Vehicle Scrapping Facility (RVSF). The policy offers the following tax reductions:
For non-transport vehicles, a 20% reduction in Motor Vehicle Tax for new petrol/CNG/LPG vehicles and a 15% reduction for new diesel vehicles.
For transport vehicles, a 15% reduction in Motor Vehicle Tax for new petrol/CNG/LPG vehicles and a 10% reduction for new diesel vehicles.
The total tax concession cannot exceed 50% of the scrap value of the vehicle being scrapped.
Explanation 1: The "Certificate of Deposit (COD)" refers to the definition in Rule 3 of the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, as updated.
Explanation 2: As per Rule 10 of the same regulations, the COD is essential and sufficient to claim the Motor Vehicle Tax concession on the purchase of a new vehicle, with a validity of three years from issuance. The COD can be traded electronically but is not valid for government-owned or impounded vehicles, and such certificates cannot be traded.
Explanation 3: The scrap value of the vehicle will be as mentioned in the COD.
[Notification No.DC/OPS/TPT/2022/390/21]
