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PCA detects tax evasion of Rs 6.5m by M/s Qadeer & Sons

PCA detects tax evasion of Rs 6.5m by M/s Qadeer & Sons

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 6.50 million allegedly by M/s Qadeer and Sons Karachi, it is learnt here.

Sources told Customs Today that M/s Qadeer and Sons imported a consignment of wooden pieces (for use in furniture manufacturing ) and got it cleared from the PICT on November 12, 2017 by paying customs duty at 6 percent after claiming the benefit of the SRO 567/2007.

However, the subject items were correctly classifiable under the PCT 2305.2819, 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 Rs 6.50 million. The goods were cleared by Head Examiner Ovaise Mengal.

Sources said that the importer violated the provisions of Section 58 (7) & (8A) of the Customs Act-1969, Section 16  read with Section 58 of the Sales Tax Act-1990 and Section 188 of Income Tax Ordinance 2001 punishable under clauses (240) and 162 of Section 624(8) of the Customs Act-1969, Section 79 of the Sales Tax Act-1990 and Section 88 & 139 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 Post Clearance Audit has detected a number of cases during last month December.