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Customs PCA detects tax evasion of Rs 6.85m by M/s Star Associates

Customs PCA detects tax evasion of Rs 6.85m by M/s Star Associates

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 6.85 million committed by M/s Star Associates, it is learnt here.

Sources told Customs Today that M/s Star Associates imported a consignment of 800cc  sports motorcycle parts and got the same cleared from the PICT Karachi vide GDs on September 16, 2017 by paying customs duty at 12 percent after claiming the benefit of the SRO 568/2007.

However the subject items were correctly classifiable under the PCT  3548.2508 attracting customs duty at 16 percent and income tax at 12 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 6.85 million. The goods were cleared by Head Examiner Yousuf Nayyer.

Sources told that the importer violated the provisions of Section 45 (7) & (6-A) of the Customs Act-1969, Section 28 read with Section 36 of the Sales Tax Act-1990 and Section 78 of Income Tax Ordinance-2001 punishable under clauses (87) and 248 of Section 289(3) of the Customs Act-1969, Section 96 of the Sales Tax Act-1990 and Section 86 & 148 of Income Tax Ordinance-2001 and Section 9-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 the Post Clearance Audit has detected nine cases till 19th March, 2018..