Q.1035 Calculation of customs

duty on car taken to India from

abroad

Question: Hi, On what price of the car is the 120% or 180% duty levied for cars brought to India from abroad? Is it 180% of the cost price or the recent price? Answer: Customs duties for cars is calculated based on the invoice price of the new car less any depreciation if applicable when NRIs import car’s under transfer of residency. Many NRIs repeatedly send inquiries related to import of cars to India and applicable customs duties. The Indian customs website provides information on applicable customs duties, import rules and regulations and NRIs can find useful information on their website. The Indian customs website over the years has been made quite user friendly.

Actual customs duty on used car

taken to India

The current customs import duty for a used car [8703.23.91] taken to India is 125% however the final customs duty paid will be higher as additional taxes are added to the 125% car customs duty. Customs Duties/Taxes to be paid on import of car to India: • Used Car has an import duty rate of 125% • Landing Charges rate is 1%, • Countervailing Duty rate is 30% + Countervailing Duty rate is INR20000.00 per piece + • CESS rate is 3%, • Additional Countervailing Duty rate is 4% Here is a sample Indian customs duty calculation from the Indian customs website [www.cbec.gov.in] for taking a car to India. The chart shows a sample calculation based on assessable value Rs. 100000. This should give readers a better idea of how to easily calculate the amount of customs duty payable in India when taking a car to India.