What will be the customs duty to import a used car from Dubai to India
Question: what will be the customs duty to import a 4 year old self used car from Dubai to India on transfer of residence, if the original cost of the car was equivalent to Rs 12 lacs
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- 583 Days ago
- Shipping to India - Return to India
Answer(s)
Raju Kanumuri: Transfer Of Residence Rules India
NRIs who are returning to India after a stay abroad may avail the “transfer of residence” for permanent settlement. Under this, you are allowed to import one car or motorcycle (new or used), provided your situation meets the following criteria:
You have lived abroad for at least two years, and plan to stay in India for one year at least. Your stay in India during the past two years should not have exceeded the duration of six months.
You have not imported another vehicle under this scheme during the past three years.
Only one member of a family can import a vehicle under this scheme.
Your new or used car with an engine capacity of 1,600 cc can be imported. But if it exceeds this amount, the vehicle should have been registered in your name and should have been driven by you for at least one year.
Customs duty is calculated after deducting the cost of inflation. The maximum depreciation allowed in India is 70% of the new car price.
The depreciation on used cars is calculated as follows:
For every quarter during the 1st year - 4%
For every quarter during the 2nd year - 3%
For every quarter during the 3rd year - 2.5%
For every quarter during the 4th year, and thereafter - 2%
You can pay the customs duty either through foreign exchange or through money from your NRE/FCNR account.
For more information, you can follow the reference link https://www.videshi.com/nri-information/custom-duty-on-used-imported-cars-in-india
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