How can i take my car to India . And bring back to UAE after my vacation

Question: How can i take my car to India . And bring back to UAE after my vacation?


Raju Kanumuri: Rules for Importing a used car to India

There are various situations where importing of used cars to India is considered to be the most favorable option such as when a Non-Resident India plans to return back and keep the car he has been using all these days. We suggest the following checklist in case you plan to import used cars to India:

Primarily, take the help of a custom broker for the entire process which would save you on time and efforts.
In case you plan to sell the imported car in order to make a hefty profit, which you would surely get, please keep in mind that there is a time restriction for selling imported cars. But there are dealers and brokers who can help both the seller and the buyer in bypassing the process of registration during the two years waiting time and getting the registration done at a later date.
A used car can only be imported in case the Non Resident Indian is planning to transfer residence to India.
There is no limit for CC of the used car in case the old and used car has been in the possession of the NRI for more than a year.

Keeping these points in mind while importing used cars to India would save both time and hassles for the NRI.

Customs Duty Rates For Importing Car To India

All imported vehicles, including the used imported cars which the Non Resident Indian carries back while shifting base to India needs to pay a customs duty in either foreign exchange or from their Indian bank accounts such as NRE or FCNR accounts.

While importing a car, especially a new car, the customs duty incidence totals to around 181%. However, for a used imported car, the customs duty is calculated on a depreciated price based on the age of the vehicle in consideration.

An NRI might not take the advantage of using the discounted price at the time of purchase of the vehicle while calculation of customs duty. The value of the car is determined by the sales invoice of the car.

Customs duty on used imported cars to India is calculated based on the depreciation allowed depending on the age of the car. The depreciation allowed on import of used cars for calculation of customs duty is as below:

4% - for every quarter during the 1st year
3% - for every quarter during the 2nd year
2.5% - for every quarter during the 3rd year
2% - for every quarter during the 4th year and thereafter

The maximum depreciation allowed for the calculation of customs duty on used imported cars is seventy percent depending on the price of purchase of the car.

Your Answer

Related Questions

Q: Can residential/commercial property be mortgaged by NRI?

A: The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial...

Q: How can an NRI make payment for the purchase of residential property in India?

A: Payment can be made by NRI / PIO out of : Funds remitted to India through normal banking channels or Funds held in NRE / FCNR (B) / NRO account maintained in India No payment can be made...

Q: Is repatriation of the application money for booking of flat/ payment made to the builder by NRI allowed when the flat is not allowed or the booking contract is canceled?

A: The Authorised Dealers can allow NRIs / PIOs to credit refund of application/ earnest money/ purchase consideration made by the house building agencies/ seller on account of non-allotment of flat/...

Q: If the rupee loan was taken by the NRI from an authorized dealer for the purchase of a residential property can an NRI repatriate the sale proceeds of such property?

A: Yes, Authorised Dealers have been authorised to allow repatriation of sale proceeds of residential accommodation purchased by NRIs/ PIOs out of funds raised by them by way of loans from the...