Mayapuri Industrial Area, Delhi
Accounting for Mayapuri's dismantlers, parts sellers and scrap dealers
Most businesses buy many things and sell them one by one. A dismantler buys one vehicle and sells it as engine, tyres, panels and metal, often to different people. That makes cost, stock and margin harder to pin down than in almost any other trade.
One purchase, many sales
Decide how a vehicle's cost spreads across what it yields, then use the same method every time. This is an illustration with invented figures, not a required method. Ask Deepak Mittal what suits your business.
| What came out | Expected sale value | Share of cost if bought for ₹60,000 |
|---|---|---|
| Engine and gearbox | ₹40,000 | ₹24,000 |
| Body panels and glass | ₹25,000 | ₹15,000 |
| Tyres and battery | ₹15,000 | ₹9,000 |
| Metal sold as scrap | ₹20,000 | ₹12,000 |
| Total | ₹1,00,000 | ₹60,000 |
Unsold parts remain stock until they sell. A yard full of old panels may be worth far less than the cost allotted to them, so review them regularly.
Buying from vehicle owners and small sellers
Sellers are often individuals with no GST invoice. Keep your own record anyway: date, seller's name and contact, vehicle number, price and how it was paid. A copy of the sale paperwork helps show where the vehicle came from.
Rule 138 of the CGST Rules covers movement of goods worth more than ₹50,000 by a registered person, including inward supply from an unregistered person. Ask how it applies when you bring vehicles or scrap in, and whether tax is payable on any purchase from an unregistered seller.
Selling used parts
A vehicle bought from its owner rarely comes with GST to claim, which brings rule 32(5) of the CGST Rules into view. It covers a person dealing in second-hand goods, used as such or after minor processing that does not change their nature. Where no input tax credit was taken on the purchase, the value of supply is the difference between selling and purchase prices, and a negative difference is ignored.
Ask whether parts cut from a vehicle fit this rule, as it was not written with dismantling in mind. The cost method above matters here, because the margin depends on it.
Selling scrap metal
Section 394(1) of the Income-tax Act, 2025 lists sale of scrap among the receipts on which a seller collects tax. The Act as enacted shows 1%. A Railway Board letter of June 2026 applies 2%, citing the Finance Act, 2026. Check the current rate, the section's definition of scrap, and any exception where the buyer gives a declaration.
Scrap is usually sold by weight, so keep weighbridge slips with the bill. Mixed loads priced as one lot make margin hard to check.
If you scrap vehicles officially
The Core reported in February 2026 that a few licensed shops here handle paperwork and issue Certificates of Destruction to vehicle owners. If you do, keep each certificate with the purchase and disposal records for that vehicle, so that one file answers any later question.
Vehicle scrapping and pollution rules are outside this page. Take specific advice on them, and keep licence and compliance costs in their own account.
Moving from cash to clean records
The same report describes much of this trade as informal and cash-based. If you are starting to organise your books, you do not need to fix everything at once. Begin with these:
- A separate bank account for the business
- A numbered register of every vehicle bought
- A daily note of sales and collections
- A question to Deepak Mittal about old years, before you file anything new
About the area, and about us
Delhi's Department of Industries lists Mayapuri Industrial Area, Phases I and II. Press reports trace the scrap market to the 1970s, and describe spare part shops alongside heavy dismantling units. This page describes a trade, and does not suggest anything about any particular business.
AccountOrbit takes enquiries by phone from anywhere in Delhi, including Mayapuri, but has no office there. If your records are mostly cash notes and weighbridge slips, that is a workable place to start.
Sources checked, November 2026
- CGST Rules as amended to 1 June 2021 (opens in a new tab), rules 32(5) and 138 (read at source; check for later changes)
- Income-tax Act, 2025, Gazette copy (opens in a new tab), section 394 as enacted (read at source; amended by the Finance Act, 2026)
- Railway Board letter of 17 June 2026, as published by Staff News (opens in a new tab) (official letter, read through a third-party site)
- The Core, February 2026 (opens in a new tab) (press report); Department of Industries, West Zone (opens in a new tab) (official list of the area)
Dismantling, selling parts or dealing in scrap in Mayapuri?
Tell us whether you dismantle, sell parts or deal in scrap, and how your records are kept today.
