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Customs PCA detects tax evasion of Rs 11m by M/s Usman Garments & Exports Karachi

Customs PCA detects tax evasion of Rs 11m by M/s Usman Garments & Exports Karachi

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 11 million by M/s Usman Garments and Export Karachi, it is learnt here.

Sources told Customs Today that M/s Usman Garments and Exports imported a consignment of fabric roller machine, printing machine and different kinds of hard printing chemicals, and got it cleared from the PICT Karachi vide GDs on December 19, 2017 by paying customs duty at 6 percent after claiming the benefit of the SRO 567/2007.

However, the subject items were correctly classifiable under the PCT 2548.2507 attracting customs duty at 10 percent and income tax at 12 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 11 million. The goods were cleared by Head Examiner Shams Uddin.

Sources said that the importer violated the provisions of Section 37 (8) & (2A) of the Customs Act-1969, Section 21  read with Section 47 of the Sales Tax Act-1990 and Section 146 of Income Tax Ordinance 2001 punishable under clauses (217) and 149 of Section 414(8) of the Customs Act-1969, Section 82 of the Sales Tax Act-1990 and Section 87 & 178 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.  It is necessary to mention here that Post Clearance Audit has detected 13 cases during 22 days of February.