VALUATION OF CAR & DUTY RATES  

The value of the car is determined in the following manner:

i) Manufacturer's invoice value is accepted wherever such invoice is available.

ii) When no such invoice is available, value is determined on the basis of the world car catalogues available with the department or on the basis of manufacturer's price list, where ever available. Normal Trade Discounts are allowed to be deducted where ever the value is taken on the basis of World car catalogues.

 iii) Value of Second hand car is arrived at in the above manner after allowing the deductions for depreciation as per the schedule below, subject to maximum of 70% :
 

PERIOD OF USE	DEPRECIATION ALLOWED
For every quarter during 1st year	4%
For every quarter during 2nd year	3%
For every quarter during 3rd year	2.5%
For every quarter during 4th year and thereafter	2%

 

The present rate of duty on import of Car is as below:

Total effective duty works out to 111.3085% which includes the following.
 

BASIC CUSTOMS DUTY	40%
SPECIAL CUSTOMS DUTY	5%
ADDITIONAL DUTY	40%
M.V.CESS	0.125%
SPECIAL ADDITIONAL DUTY OF CUSTOMS	4%

The categories of eligible Importers specified in the Public Notice are as follows:-

A. Persons Coming To India For Permanent Settlement.
B. Foreign Nationals Married To Indian Nationals.
C. Foreign Nationals Working In India.
D. Foreign Firms, Companies And Institutions Established In India.
E. Companies Incorporated In India Having Foreign Equity.
F.  Journalists/Correspondents Of Foreign News Agencies.
G. Indian Firms Executing Contracts Abroad.
H. Charitable And Missionary Institutions.
I.   Physically Handicapped Persons.
J.   Honorary Consuls Of Foreign Government.
 

Import of automobile is not permitted except against a licence or in accordance with a Public Notice issued in this behalf.

Import of Passenger cars and automobile vehicles may be made without a licence by the categories of eligible importers specified in the Public Notice subject to the following conditions:-

i) The payment for the vehicle is made abroad.

ii) The payment of the Customs duty is made in foreign exchange, unless exempted in the case of any particular category of importer.

iii) The conditions specified against each category of eligible importers in the Public Notice are fulfilled.

iv) The importers returning to India on permanent settlement, a declaration to that effect is given to the Customs at the time of the clearance of the Car.

Last update on: 6 July 1998.