India Valuation and Import Duty

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%.

Depreciation Percentage

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.

Breakup of Customs Duty on Car Import (2000-2001)

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%

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