India Valuation and Car IMport Duty
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, wherever 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% |
<p”>The present rate of duty on import of Car is as below:
Total effective duty works out to 101.91%, which includes the following.
|
Basic Customs Duty |
35% |
|---|---|
|
SURCHARGE ON CUSTOMS DUTY |
10% |
|
ADDITIONAL DUTY |
16% |
| SPECIAL EXCISE DUTY |
24% |
|
MOTOR VEHICLE CESS |
0.125% |
|
SPECIAL ADDITIONAL DUTY OF CUSTOMS |
4% |