Query on duty

ajmat · 1st October 2004, 23:30

A colleague of mine is being posted to to India from Penang. He has a BMW325i which he bought two years ago and cost him $70000 (US) - cars a really loaded with duty over there. If he sells he loses $200000 so the next option he thought was to bring it to India. I told him the good news that he would need to pay another 110% in duty and so he asked whether If he exports it after his stint, can he reclaim part of the duty - I do not think so but if there is a loophole, pls do let me know.

The carnet stuff only works for 6 months and the forum has gone down that path. I suggested he cuts his losses and buys a Honda Accord V6 or a Merc C Class

GTO · 2nd October 2004, 01:23

Ajmat,

Two options worth considering:

1. Is he going to be here temporarily? Then he can opt for the temporary import.
2. Can he try to get a refund out of the penang guys since he is moving the car out of the country? Or even a part of it?

Else he will have to sell it. And anyways $20000 is decent depreciation for a 2 year old luxury car.

GTO

Revvmaster · 2nd October 2004, 01:48

I think Ajmat did a typo... an extra zero.

Like GTO mentioned, i think he might be up for a sort of rebate, depending on the rules set for the age and the tax structure prevalent there.

$50,000 works out as Rs. 22.5 lakhs approx, given the depreciation rate. Then add 105% and the rest, it works to close to Rs. 50 lakhs. IMO, a very bad deal. At 44 lakhs, he can get himself a brand new 530D here. So his option should be a Merc or the Accord V6 as you rightly mentioned.

I hope someone here really knows the exact rule structure to get the best deal in such a situation.

Revvmaster

1st October 2004, 23:30	#1
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,864 Thanked: 27,975 Times View My Garage	A colleague of mine is being posted to to India from Penang. He has a BMW325i which he bought two years ago and cost him $70000 (US) - cars a really loaded with duty over there. If he sells he loses $200000 so the next option he thought was to bring it to India. I told him the good news that he would need to pay another 110% in duty and so he asked whether If he exports it after his stint, can he reclaim part of the duty - I do not think so but if there is a loophole, pls do let me know. The carnet stuff only works for 6 months and the forum has gone down that path. I suggested he cuts his losses and buys a Honda Accord V6 or a Merc C Class
	() Thanks

2nd October 2004, 01:23	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,738 Times View My Garage	Ajmat, Two options worth considering: 1. Is he going to be here temporarily? Then he can opt for the temporary import. 2. Can he try to get a refund out of the penang guys since he is moving the car out of the country? Or even a part of it? Else he will have to sell it. And anyways $20000 is decent depreciation for a 2 year old luxury car. GTO
	() Thanks

2nd October 2004, 01:48	#3
Revvmaster Senior - BHPian Join Date: Feb 2004 Location: Bombay Posts: 1,190 Thanked: 95 Times	I think Ajmat did a typo... an extra zero. Like GTO mentioned, i think he might be up for a sort of rebate, depending on the rules set for the age and the tax structure prevalent there. $50,000 works out as Rs. 22.5 lakhs approx, given the depreciation rate. Then add 105% and the rest, it works to close to Rs. 50 lakhs. IMO, a very bad deal. At 44 lakhs, he can get himself a brand new 530D here. So his option should be a Merc or the Accord V6 as you rightly mentioned. I hope someone here really knows the exact rule structure to get the best deal in such a situation. Revvmaster
	() Thanks