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PCA detects Rs11.54m tax evasion by M/s Rim Jhim Associates

PCA detects Rs11.54m tax evasion by M/s Rim Jhim Associates

KARACHI: Directorate of Customs Post Clearance Audit (PCA) detected duties and tax evasion of Rs11.54 million by M/s Rim Jhim Associates, Karachi, it is learnt here.

Sources told Customs Today on August 8, 2018 that M/s Rim Jhim Associates, Karachi imported a consignments of electronics and rechargeable items (including multimedia commercial speakers, amplifier, buffer systems, rechargeable fans, data banks, and so many other things and got it cleared from the PICT on March 17, 2018 by paying customs duty at 6 percent after claiming the benefit of the SRO 557/2007.

However, the subject items were correctly classifiable under the PCT 5487.5807 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  Rs11.54 million. During the month of March, 2018, the goods were cleared by Examiner Yameen Sarwar and Majid Sameer.

Sources said that the importer violated the provisions of Section 4-A,7B & 89  (2, 8,11 and 6-A) of the Customs Act-1969, Section 48 and 56  read with Section 5 of the Sales Tax Act-1990 and Section 24 of Income Tax Ordinance 2001 punishable under clauses (85, 92) of Section 65(9) of the Customs Act-1969, Section 24 of the Sales Tax Act-1990 and Section 89 of Income Tax Ordinance 2001 and Section 5-B 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.