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.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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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.
N
RI Information
 Informing  educating and connecting Indians across the globe
NriInformation Questions &Answers 
Read Disclaimer at bottom of page
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com