Passenger cars / jeeps / multi-utility vehicles are restricted for import and can be imported against an import license. However, individuals coming to India for permanent settlement after two years continuous stay abroad and other importers as specified in Public Notice No. 3(PN/97-02), dated 31-03-1997 of Directorate General of Foreign Trade, New Delhi, may import these vehicles without a license but on payment of customs duty. Total customs duty leviable on these vehicles is 119.86% and on used vehicles the duty is 181.69%.Value of these vehicles for the purpose of levy of customs duty is CIF value, where C stands for the Cost of the goods, I is the Insurance and F is the Freight. Cost in the case of new vehicle is the transaction value between the seller and the buyer, however in the case of old and used vehicles cost is arrived at by taking value of the vehicle in year manufacture and after allowing depreciation at following rates.
|
>(i) |
For every quarter during 1st year - |
4% |
|
(ii) |
For every quarter during 2nd year - |
3% |
|
(iii) |
For every quarter during 3rd year - |
2.5% |
|
(iv) |
For every quarter during 4th year - |
2% |
|
and thereafter |
subject to a maximum depreciation of 70% |
