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PCA detects tax evasion of Rs 4.88m by M/s Shafiqur Rehman & Sons

PCA detects tax evasion of Rs 4.88m by M/s Shafiqur Rehman & Sons

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 4.88 million committed by M/s Shafiqur Rehman and Sons, Karachi, it is learnt here.

Sources told Customs Today that M/s Shafiqur Rehman imported a consignment of various types of auto parts with radiators and got it cleared from the PICT Karachi vide GDs on November 14, 2017 by paying customs duty at 8 percent after claiming the benefits of the SRO 562/2007.

However, the subject items are correctly classifiable under the PCT 4507.2675 attracting customs duty at 12 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 4.88 million. The goods were cleared by Head Examiner Ovaise Mangal.

Sources told that the importer violated the provisions of Section 59 (5) & (9A) of the Customs Act-1969, Section 18 read with Section 58 of the Sales Tax Act-1990 and Section 187 of Income Tax Ordinance-2001 punishable under clauses (242) and 152 of Section 626(9) of the Customs Act-1969, Section 79 of the Sales Tax Act-1990 and Section 85 & 149 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.

It is necessary to mention here that the Post Clearance Audit has detected a number of cases during the last month of December.