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PCA detects tax evasion of Rs 3.1m by M/s Ekada Corporation

PCA detects tax evasion of Rs 3.1m by M/s Ekada Corporation

KARACHI: The Directorate of Post Clearance Audit (PCA) has detected tax and duty evasion of Rs 3,19 million by M/s Ekada Corporation on import of shredded/grated cheese, it is learnt. In this regard, a contravention report has been issued against the importer.

According to sources, during the audit of import data of “shredded/grated cheese”, it has been observed that M/s Ekada Corporation cleared six consignments of “shredded/grated cheese” from MCC Port Muhammad Bin Qasim by mis-declaring the classification under PCT heading 0406.1010 & 0406.3000 in order to avail inadmissible benefit/exemption for sales tax under 6TH Schedule of the Sales Tax Act, 1990.  The imported goods are appropriately classifiable under PCT 0406.2000 and are chargeable to Sales Tax @ 17% and corresponding Income Tax @ 06%.

Thus, by mis-declaring the imported goods under PCT 0406.1010 & 0406.3000 to avail the inadmissible benefit/exemption of sales tax and corresponding income tax, M/s. Ekada Corporation, Karachi  has evaded/short paid Rs 3,192,516.

Since the importers have failed to justify the above mis-declaration, a Contravention Report is therefore, forwarded to the Additional Collector, Collectorate of Customs Adjudication-I, for initiating adjudication proceedings in the case.