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PCA detects Rs3.22m tax evasion by M/s Zainab Garments & Knitwear

PCA detects Rs3.22m tax evasion by M/s Zainab Garments & Knitwear

KARACHI: The Directorate of Customs Post Clearance Audit, Director Nadeem Memon detected duties and tax evasion of Rs 3.22 million by M/s Zainab Garments & Knitwear, Landhi, it is learnt here.

Sources told Customs Today on Wednesday that M/s Zainab Garments & Knitwear imported consignments of embroidery, overlook, fabric press machines, and various kinds of printing machine parts and got it cleared from the QICT on November 11, 2017 by paying customs duty at 12 percent after claiming the benefits of the SRO 553/2007.

However, the subject items were correctly classifiable under the PCT 2457.2548 attracting customs duty at 14 percent and income tax at 10 percent, thus by way of mis-declaration of classification the company evaded/short-paid  Rs 3.22 million. the goods were cleared by Examiner Matiur Rehman Aghaz During the month of December, 2017 .

Sources said that the importer violated the provisions of Section 54,85, and 98  (2 and 6-A) of the Customs Act-1969, Section 25,47 & 76  read with Section 9,11,14 of the Sales Tax Act-1990 and Section 69,78 of Income Tax Ordinance 2001 punishable under clauses (547, 648) of Section 9,81(4) of the Customs Act-1969, Section 58 of the Sales Tax Act-1990 and Section 74,19 of Income Tax Ordinance 2001 and Section 2,7 & 6-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.