Certificate of Deposit (COD) and car scrapping benefits
When you scrap with a registered facility, you get two government certificates. One of them has real money value, either off your next vehicle or as cash if you sell it. Here's how both work and what today's rules say.
COD vs CVS: the two vehicle scrapping certificates
Certificate of Deposit (COD)
Issued when we accept your vehicle and deface your RC. It proves the vehicle has been handed in for scrapping. This is the certificate with the benefits. It's valid for three years and most CODs can be transferred to someone else. CODs for government-owned vehicles, and for vehicles impounded by an enforcement agency, carry no incentives and can't be traded.
Certificate of Vehicle Scrapping (CVS)
Issued once the vehicle is fully dismantled and the chassis number destroyed. We send it with your defaced RC to the RTO, which then cancels the registration. Keep a copy for your insurer, your accountant and your own files.
| COD | CVS | |
|---|---|---|
| When it's issued | When the vehicle is deposited | After the vehicle is dismantled |
| What it proves | The vehicle was handed in for scrapping | The vehicle has been destroyed |
| Gives tax benefits | Yes | No |
| Can be sold | Yes, within its three years | No |
| Where it's stored | On Vahan, in the owner's name | On Vahan, in the owner's name |
Car scrapping policy benefits on your next vehicle
Road tax concession
Register a new vehicle against a valid COD and you can get a road tax concession. Central rules allow up to 25% on a private (non-transport) vehicle and up to 15% on a commercial (transport) vehicle. Since March 2025, they allow up to 50% for BS-I and older vehicles, and for BS-II medium and heavy goods and passenger vehicles. Each state applies its own rate within these limits. Rajasthan goes further: its Vehicle Scrapping Policy 2025 allows up to 50% off the motor vehicle tax, capped at ₹1 lakh, when the new vehicle is bought from an authorised dealer in Rajasthan against a valid COD.
No registration fee
The new vehicle's registration fee is waived when it's registered against a COD.
Dealer offers
Some vehicle makers and dealers offer an extra discount against a COD now and then. These offers change, so ask the showroom before you buy.
Example: your road tax saving in real numbers
Here's an example with assumed numbers. Suppose you scrap your old car with us and then buy a new private car for ₹8,00,000 (ex-showroom) in a state that charges 10% road tax.
The road tax would come to ₹80,000. Your COD's 25% concession saves you ₹20,000. On top of that, there's no registration fee, and the scrap price for your old car is already in your bank.
Buy the same car from an authorised dealer in Rajasthan and qualify for the full 50% rebate, and the saving would be ₹40,000, well under the ₹1 lakh cap. Your actual saving depends on the vehicle and the state notification in force.
- 25% off a road tax bill of ₹80,000
- Registration fee waived
- Plus the scrap price for your old car
How to sell your Certificate of Deposit
Most CODs can be transferred. If you don't plan to buy a vehicle, you can sell yours to someone who does. CODs for government-owned and impounded vehicles are the exception.
How selling works
- When we deposit your vehicle, your COD is issued in your name on Vahan.
- You list it on an approved online COD trading platform linked to Vahan.
- A buyer pays for it, and the COD moves into their name online.
- The buyer uses it to claim the concession when registering their new vehicle.
Things to keep in mind
Three-year validity
Counted from the date it was first issued. Selling it doesn't reset the clock.
You agree the price
It depends on the type of vehicle and how much validity is left.
Official channels only
A COD handed over with a written note isn't a valid transfer.
We'll walk you through it
We'll explain the steps when we give you your COD.
Vehicle scrapping policy and rules in force today
A short, plain summary of the rules that matter to vehicle owners. Last checked in October 2026.
Vehicle Scrappage Policy and the RVSF Rules, 2021
The Ministry of Road Transport and Highways launched the national Vehicle Scrappage Policy in August 2021. Under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, only facilities registered by the state government may scrap registered vehicles and issue the COD and CVS.
Fitness tests and older vehicles
Registration on a private vehicle is valid for 15 years. After that, it can be renewed every five years if the vehicle passes a fitness test. Commercial vehicles need a valid fitness certificate throughout their life. A vehicle that fails and can't be fixed is an end-of-life vehicle and should be scrapped. Most central and state government vehicles are scrapped once they're 15 years old, with exceptions for some defence and security vehicles.
End-of-Life Vehicles Rules, 2025
In force from 1 April 2025. Vehicle makers now have recycling targets. Every owner must hand over an end-of-life vehicle within 180 days. Registered scrapping facilities, vehicle makers and bulk owners with more than 100 vehicles also have to register on a central online portal. Read more under fleet scrapping.
Rajasthan Vehicle Scrapping Policy 2025
Notified on 2 January 2026 and valid until 31 March 2029. It allows up to 50% off the motor vehicle tax, capped at ₹1 lakh, on a new vehicle bought from an authorised dealer in Rajasthan against a valid COD. It also says the gap between a COD and its CVS can't be more than 60 days. Vehicles over 15 years old, vehicles without fitness or registration, and accident-damaged vehicles are all covered.
Delhi-NCR age limits
Diesel vehicles over 10 years old and petrol vehicles over 15 years old face age limits on Delhi-NCR roads. In December 2025, the Supreme Court allowed action against such vehicles again if they're BS-III or older. BS-IV and newer vehicles are protected from action based on age alone, for now. Fitness, pollution and other rules still apply, and the case is still being heard, so check the current position before driving an older vehicle in NCR.
Scrappage benefits and COD FAQs
Start with a fair price for your old vehicle
Your COD is issued as soon as we deposit your vehicle. Send us the details and we'll handle the rest.