Fees, Taxes, Emission Norms, Disqualification Rules & When Scrapping Is Better – Carbasket Guide
Introduction
In India, vehicle ownership comes with time-bound legal validity. Once a vehicle crosses 15 years (private) or 10–15 years (transport), owners must either re-register the vehicle, continue periodic fitness renewals, or opt for vehicle scrapping.
With rising renewal fees, green tax, emission compliance costs, inter-state reassignment tax, and stricter fitness tests, many owners now ask a critical question:
Is renewing an old vehicle still worth it, or is scrapping the smarter option?
This guide answers that question with detailed fee breakup, legal requirements, and real-world cost analysis.
Registration Validity & Renewal Rules (Quick Overview)
Private (Non-Transport) Vehicles
- Initial RC validity: 15 years
- Renewal period: 5 years at a time
- Renewal possible multiple times if vehicle remains fit
Transport (Commercial) Vehicles
- Fitness required:
- Up to 8 years: periodic (state-specific)
- After 8 years: every 2 years
- Practical restriction in many cities after 10–15 years, especially diesel vehicles
Re-Registration After 15 Years – Detailed Process
To renew RC after 15 years, the vehicle must pass current fitness and emission standards, even though it is not upgraded to new BS norms.
Mandatory Steps
- Automated Fitness Test (ATS)
- Emission (PUC) compliance
- Payment of renewal & environmental charges
- Clearance of:
- Pending challans
- RC flags / NTBT
- Issuance of renewed RC for 5 years
Renewal & Re-Registration Fees (Detailed Breakdown)
1. RC Renewal Fees (Private Vehicles)
Particular Approx. Fee (₹)
RC renewal fee 600
Smart card fee 200
Service charges 200–400
Total (excluding other taxes) ~1,000–1,200
2. Fitness Test Fees (Automated Fitness Testing Station)
Vehicle Type Fee (₹)
Private car 600–1,000
Two-wheeler 400–600
Transport vehicle1,000–1,500
Re-test (if failed)Additional charge
⚠️ Failure rate increases sharply after 12–15 years, especially for diesel vehicles.
3. Green Tax (Major Cost Component)
Green tax is imposed to discourage prolonged use of older vehicles.
Vehicle Type Green Tax Range (₹)
Private petrol car 2,000 – 5,000
Private diesel car 3,000 – 10,000
Two-wheelers1,000 – 3,000
Transport vehicles 5,000 – 15,000+
📌 Levied every renewal cycle (usually every 5 years).
4. Emission Compliance Costs
- PUC certificate: ₹100–200
- Repairs to meet emission limits:
- Petrol vehicles: ₹2,000–10,000
- Diesel vehicles: ₹10,000–50,000+
- Failure = re-registration rejected
Re-Registration After 10–15 Years (Transport Vehicles)
Transport vehicles face:
- Higher fitness failure rate
- Stricter pollution norms
- Frequent inspections
- Reduced commercial viability
Typical Renewal Cost (Commercial Vehicle)
Cost Head Approx. Amount (₹)
Fitness test1,000–1,500
Green tax 5,000–15,000
Permit renewals Varies Emission compliance High
Total (per cycle) ₹10,000–30,000+
👉 Many operators exit the system and opt for scrapping.
Inter-State Re-Registration (Assignment of New Registration Mark)
When a vehicle is moved to another state:
Mandatory Costs
- Life-time road tax again (based on vehicle age & value)
- Green tax of the new state
- Smart card & processing fees
Reality Check
- Refund of old state tax is delayed, partial, or denied
- Older vehicles are taxed heavily with little benefit
💡 For vehicles older than 10–12 years, inter-state reassignment is often financially unjustified.
Grounds for Disqualification of Re-Registration
A vehicle cannot be renewed or re-registered if:
- Fails fitness test
- Excessive chassis rust or structural damage
- Engine or emission failure
- Accident-damaged beyond repair
- RC marked NTBT / Blacklisted
- Pending e-challans or court cases
- Prohibited by local pollution orders
In such cases, scrapping becomes the only legal option.
Is Re-Registration Fair or Unfair?
Government’s View
- Pollution control
- Road safety
- Fleet modernisation
- Environmental accountability
Vehicle Owner’s Concern
- Lifetime tax already paid
- Repeated green tax with no incentives
- Good vehicles penalised due to age
- High renewal cost vs low resale value
👉 Policy is age-based, not condition-based.
Re-Registration vs Vehicle Scrapping – Cost Comparison
Example: 15-Year-Old Diesel Car (City Use)
Expense Re-Registration (₹)
RC renewal & smart card 1,200
Fitness test1,000
Green tax 8,000
Emission repairs 20,000Total (5 years) ~30,000+
And this repeats every 5 years.
Vehicle Scrapping with Carbasket
- Zero renewal cost
- RC cancellation under Section 55
- Scrap value pay-out
- No future tax or penalty risk
When Does Carbasket Recommend Scrapping?
Scrapping is recommended if:
- Vehicle is 15+ years old
- Diesel vehicle in urban area
- High green tax liability
- Repeated fitness failures
- Inter-state re-registration needed
- Repair cost > vehicle value
♻️ Scrapping is legal, final, and future-safe.
Conclusion
While vehicle re-registration after 15 years (private) or 10–15 years (transport) is legally permitted, the real cost of renewal, green tax, emission compliance, and inter-state reassignment often makes it uneconomical and unfair for owners.
Before renewing an ageing vehicle, evaluate:
- Total 5-year cost
- Fitness failure risk
- Pollution restrictions
- Long-term liability
If renewal no longer makes sense, Carbasket helps you scrap responsibly, legally, and without future risk.
FAQs
Q1. How much does RC renewal after 15 years cost in total?
Typically ₹10,000–40,000 depending on vehicle condition.
Q2. Is green tax compulsory?
Yes, for old vehicles.
Q3. Can a failed vehicle be renewed?
No. Fitness failure leads to disqualification.
Q4. Is scrapping mandatory after 15 years?
Not automatically, but failure makes it mandatory.
Q5. Does Carbasket handle RC cancellation?
Yes, with authorized scrapping and full compliance.
