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PCA detects Rs4.27m tax evasion by M/s J.J. Enterprises

PCA detects Rs4.27m tax evasion by M/s J.J. Enterprises

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 4.27 million by M/s J J Enterprises, and sent report of concern to adjudication, it is learnt here.

Sources told Customs Today on Friday that M/s  J J Enterprises imported a consignment of chargeable electronic items including charging lights, fans, batteries and other things, and got them cleared from the PICT Karachi vide GD on January 18, 2018 by paying customs duty low at 8 percent after claiming the benefit of the SRO 551/2007.

However, the subject items were correctly classifiable under the PCT 2547.2507  attracting customs duty at 10 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 4.27  million. The goods were cleared by Examiner Sabih Hussain.

Sources said that the importer violated the provisions of Section 54 (9-A) of the Customs Act-1969, Section 28  read with Section 33 of the Sales Tax Act-1990 and Section 29 of Income Tax Ordinance 2001 punishable under clauses (27) of Section 37(6) of the Customs Act-1969, Section 38 of the Sales Tax Act-1990 and Section 36 of Income Tax Ordinance 2001 and Section 2-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.