import of car by NRI

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2010 if a NRI purchased a car in Kanada for US$500000 before 6 months. Now he want to bring it into India. Would he liable to pay import duty under custom law and on which value?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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03 November 2010 Customs Valuation of Used Cars
The value of any car has to be determined for purpose of customs duties. Customs valuation is determined in the following manner:
Manufacturer's invoice value is accepted wherever such invoice is produced.
When no such invoice is made available, the value is determined according to the world car catalogues available with the department or on the basis of manufacturer's price list, wherever available.
Whenever the value is taken on the basis of World car catalogs, normal trade discounts are allowed to be deducted.
Value of a second hand car is arrived at in the above manner after allowing the deductions for depreciation explained in the table above, subject to maximum of 70%.
Total effective customs duty works out to 101.91%, which includes 35% basic customs duty; 10% surcharge on customs duty; 16% additional duty; 24% special excise duty; 0.125% motor vehicle cess; and 4% special additional duty of customs.
Customs duty payable on cars (in case of completely built unit or CBU) is approximately 111% of the value assessed. It includes 60% on CBU imports plus countervailing duties and other levies. In case of “completely knocked down” or CKD car models which are assembled in country, the custom import tax is only 38 to 48% depending on engine displacement based on EXIM policy and rules framed under it.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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03 November 2010 Import of Car by NRIs
No import licence may be needed for importing cars and other vehicles into India if the following conditions were satisfied:
1) The person who is importing the car should have been abroad continuously for a period of not less than two years.
Customs Duty:

Basic Customs Duty 40%
Special Customs Duty 5%
Additional Duty 40%
M.V.Cess 0.125%
Special Additional duty of Customs 4%
This is subject to an overall limit of 70%

By and large the ex-factory price on the date of original purchase is taken into account while assessing the duty on a motor vehicle.

FOR MORE INFO:-

https://www.nriol.com/resources/customs/importcar.asp

https://www.nriol.com/resources/customs/vehicle.html

https://cbec.gov.in

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