KARACHI: The Directorate of Customs Post Clearance Audit has detected evasion of duties and taxes of Rs 10.34 million allegedly by M/s Yousuf Textile Mills Gharo, it is learnt.
Sources told Customs Today M/s Yousuf Textile Mills Gharo imported a consignment of hosiery fabrics, printed bed sheets, cotton curtain fabrics and other items under the PCT Heading 2307.7890 and got it cleared from the Pakistan International Container Terminal (PICT) Karachi vide GDs on September 27, 2017 by paying customs duty at 12 percent after claiming the benefit of SRO 714/2007.
However, the subject items are correctly classifiable under the PCT 2344.3408 attracting customs duty (CD) at 16 percent and income tax at 12 percent. Thus, by way of mis-declaration of classification, M/s Yousuf Textile Mills Gharo evaded/ short-paid amount of Rs 10.34 million.
The importer has violated the provisions of Section 68 (2) (3) of the Customs Act-1969, Section 85 read with Section 47 of the Sales Tax Act-1990 and Section 102 of Income Tax Ordinance 2001 punishable under clauses (23) and 22 of Section 162(1) of the Customs Act-1969, Section 164 (4) of the Sales Tax Act-1990 and Section 122 & 123 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.
Accordingly, an audit observation was issued to M/s Yousuf Textile Mills Gharo for explaining and clarifying as to on which basis they have avoided/evaded the taxable duty and taxes.