Importing a car in India attracts several taxes and duties. In this article, we will specifically discuss the import duty on cars.
Taxes to Import a Car
Customs duty or import tax on vehicles in India comes under the Customs Act of 1962. Imported vehicles may cost nearly twice the retail price after adding the amount paid as customs duty. Let’s look into it in detail.
- The customs duty is levied as per the policies mandated by the CBEC (i.e., the Central Board of Excise and Customs).
- Currently, one needs to pay 100% customs duty on cars imported from other countries to India with CIF (i.e., Cost, Insurance and Freight) value above US $40,000.
- For cars with CIF less than US $40,000, a 60% customs duty gets levied.
- The import tax levied is 125% in the case of used cars.
Conclusion
In India, no car can go on-road without having proper insurance. Besides, it is in the user’s interest that the imported car is properly insured. As one can purchase car insurance online, getting your vehicle insured is easy and hassle-free. Although third-party liability insurance is mandatory, consider investing in a comprehensive plan for complete peace of mind.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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