Queries regarding Indian import taxes

Arsenic · 26th July 2022, 10:51

I had a few queries regarding Indian import taxes. For the purpose of this post, we'll use our example car as an Australian-market Subaru Outback AWD Touring, which retails at AUD49,790 MRLP (under USD40,000). The car has an RHD configuration and is powered by a 2.5L 4-pot engine mated to an 8-speed CVT transmission.

Hence,

1. This car would technically be legal to import, unless I'm missing out on something. It's right-hand drive, the speedometer shows kilometers and the headlamps light up the left-side of the road.

2. Does the duty cut for cars under $40,000 apply to private individuals or is it only for automakers/manufacturers?

3. As the engine is 2.5L, would it be part of the banned cars list by engine size? (Cars with engines between 1000cc and 2500cc are banned for importing in India, although I'm assuming that exactly 2500cc would be legal)

4. If the car was bought fresh by the person who wanted to import it, it would technically be counted as a new car and not a used car, right? (noob question, I know

)

Thanks!

BHPians, if you have some queries as well regarding import duties, add them in the replies!

Image Source: SIAM website

Aditya · 27th July 2022, 07:34

Thread moved out from the Assembly Line. Thanks for sharing!

Rehaan · 28th July 2022, 10:08

Quote:

Originally Posted by Arsenic

3. As the engine is 2.5L, would it be part of the banned cars list by engine size? (Cars with engines between 1000cc and 2500cc are banned for importing in India, although I'm assuming that exactly 2500cc would be legal)

When a manufacturer says "2.5L" it doesn't mean exactly 2500cc.

In this case it's 2498 cc - so that means it's within the banned range.

Arsenic · 28th July 2022, 10:38

Quote:

Originally Posted by Rehaan

When a manufacturer says "2.5L" it doesn't mean exactly 2500cc.

In this case it's 2498 cc - so that means it's within the banned range.

Ouch! So a minuscule 2cc difference effectively rules out the Outback. What a shame.

And after doing a bit more digging, I found the following Australian-market cars that are legal to import and are under USD40,000

- ISUZU MU-X, ISUZU D-Max, Mazda BT-50 (shared 3.0L engine)

- Toyota Kluger/Highlander (3.5L V6)

Indian private import duty is quite restrictive, really.

riteshritesh · 28th July 2022, 12:16

With regards to imports by private individuals, only persons transferring residence can bring in their personal car. This essentially means that the car had to registered and used while the person was employed in RHD country and now has decided to move back to India along with his personal belongings.
The car can be of any size or value or HP or CC, it will be charged 160% on the depreciated cost ( Cost in year of manufacture is taken as per Indian Customs discretion and not at what the Passenger has purchased for).

The 40,000 USD/2.5 litres etc is for Car Manufacturers importing new vehicle. Above 40,000 USD , I believe the ARAI homologation condition is waived, other conditions remaining intact. A few years back, I suppose some 100-200 units were allowed to be imported without ARAI homologation even for lower CC/Value cars.

26th July 2022, 10:51	#1
Arsenic BHPian Join Date: May 2022 Location: Mumbai Posts: 190 Thanked: 1,020 Times	Queries regarding Indian import taxes I had a few queries regarding Indian import taxes. For the purpose of this post, we'll use our example car as an Australian-market Subaru Outback AWD Touring, which retails at AUD49,790 MRLP (under USD40,000). The car has an RHD configuration and is powered by a 2.5L 4-pot engine mated to an 8-speed CVT transmission. Hence, 1. This car would technically be legal to import, unless I'm missing out on something. It's right-hand drive, the speedometer shows kilometers and the headlamps light up the left-side of the road. 2. Does the duty cut for cars under $40,000 apply to private individuals or is it only for automakers/manufacturers? 3. As the engine is 2.5L, would it be part of the banned cars list by engine size? (Cars with engines between 1000cc and 2500cc are banned for importing in India, although I'm assuming that exactly 2500cc would be legal) 4. If the car was bought fresh by the person who wanted to import it, it would technically be counted as a new car and not a used car, right? (noob question, I know ) Thanks! BHPians, if you have some queries as well regarding import duties, add them in the replies! Image Source: SIAM website Attached Thumbnails
	(3) Thanks

27th July 2022, 07:34	#2
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 18,101 Thanked: 78,062 Times View My Garage	re: Queries regarding Indian import taxes Thread moved out from the Assembly Line. Thanks for sharing!
	(2) Thanks

28th July 2022, 12:16	#5
riteshritesh BHPian Join Date: Aug 2009 Location: Mumbai Posts: 554 Thanked: 712 Times	re: Queries regarding Indian import taxes With regards to imports by private individuals, only persons transferring residence can bring in their personal car. This essentially means that the car had to registered and used while the person was employed in RHD country and now has decided to move back to India along with his personal belongings. The car can be of any size or value or HP or CC, it will be charged 160% on the depreciated cost ( Cost in year of manufacture is taken as per Indian Customs discretion and not at what the Passenger has purchased for). The 40,000 USD/2.5 litres etc is for Car Manufacturers importing new vehicle. Above 40,000 USD , I believe the ARAI homologation condition is waived, other conditions remaining intact. A few years back, I suppose some 100-200 units were allowed to be imported without ARAI homologation even for lower CC/Value cars.
	(3) Thanks