Import Duty

What is Import Duty?

Import duty, also known as customs duty, is a type of tax imposed by a government on goods and services that are brought into a country. The primary purpose of import duties is to generate revenue for the government and protect domestic industries by making imported goods more expensive compared to locally produced items. Import duties can be based on the value of the goods, the weight or quantity (specific), or a combination of both.

Import Duty Example

If a company in India imports machinery from Germany worth ₹100,000 and the import duty rate is 5%, the company would need to pay an import duty of ₹5,000 to the Indian government. This duty is added to the cost of the machinery, increasing the overall expense for the importer.

Import Duty on Cars in India

The import duty on cars in India depends on the Cost, Insurance, and Freight (CIF) value of the car and whether it's new or used:

New Cars:

Over US$40,000: 100% customs duty
Under US$40,000: 60% customs duty

Used Cars: 125% customs duty

Additional factors to consider:

• You'll also need to pay registration fees and road tax, which are separate from the import duty.
• The import process can be complex, so it's wise to consult with a professional.

Import Duty on Gold and Silver in India

The import duty on gold and silver in India varies depending on the type of product and its form. Here's a general idea:

Gold:
Doré bars (gold mixed with silver): 10.75%
Raw gold: 12.5%
Manufactured gold items: Varies depending on the item (typically between 10% and 22%)
Silver: 10%