Wednesday, 16 November 2011

Customs Duty on cars taken to India

Customs Duty on cars taken to India


Q: I am planning to take my two year old Toyota to India on a transfer of residency. What is the rate of customs duty charged in India on cars.

A: The rate of duty charged in India presently works out to about 181% Customs duty is charged on the basis of list price prevailing.

Trade discount and in the case of used second hand cars the depreciation on the value of the car, depending on the age of the vehicle are deducted from the price list.

Freight charges, insurance and landing charges are added to arrive at the final assessable value of the car, on which duty must be paid from your earnings abroad. I would contact a clearance broker in Mumbai to help with documentation and advice if you are seriously contemplating taking your car to India.

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