Q544. Taking car to India from

Dubai - Importing a car to India

from abroad

Question: HI, I am currently leaving in Dubai for 3 years. i have a vehicle for more than 1.5 years which is used one and 2006 model. i would like to know whether i need to pay any duty while i am shifting back to India for permanent basis. your reply is highly appreciated Thank you, Rohit Answer: There is a misconception amongst some non- residents that importing a car to India under the Transfer of Residency rules gives NRIs the privilege of importing a car to India duty free! This is not true. Duty is charged, but at a reduced rate. Still the duty works out to around 120% for a new car and around 181% on a used car! Here is some general information on taking a car to India from abroad: • There is a engine capacity limit on new cars imported to India. On new cars 1600cc limit applies. • There is no cc limit applicable on old cars imported to India provided the car has been in your possession for more than one year. • Duty is calculated on CIF value. In case you are wondering what CIF is, C stands for the cost of the goods, I is the insurance and F is the freight. These are added to the car value to calculate the customs duty. • New car value is determined from the original sales invoice. • Used car’s value for customs duty purposes is determined after taking into account depreciation according to the age of the car. A chart showing the depreciation allowed can be seen at: http://nriinformation.com/articles2/carimports_ nri.htm • Customs duty must be paid in foreign exchange. • Car should be imported within six months of the arrival in India of the person importing the car under transfer of residency. • There are now no restrictions on selling the car after importing it. Previously there used to be a two year restriction on selling such cars. • A person who imports a car to India under transfer of residence scheme, cannot import another vehicle to India for five years. • Any one importing car under transfer of residency, must have stayed abroad for at least two years.