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PCA detects Rs6m tax evasion by M/s Alam Fayyaz & Sons & Landhi

PCA detects Rs6m tax evasion by M/s Alam Fayyaz & Sons & Landhi

KARACHI: The Directorate of Customs Post Clearance Audit (PCA) on Thursday detected duties and tax evasion of Rs 6 million by M/s Alam Fayyaz and Sons, Landhi, Karachi and sent report of concern to adjudication, it is learnt here.

Sources told Customs Today that M/s Alam Fayyaz and Sons, Landhi, Karachi imported two consignments of imported dinner sets, included fancy dinner sets and got it cleared from the QICT Karachi vide GD on December 12, 2017 by paying customs duty low at 6 percent after claiming the benefit of the SRO 553/2007.

However, the subject items were correctly classifiable under the PCT 7622.0521  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 Rs6 million. The goods were cleared by Examiner Rashid Saeed.

Sources said that the importer violated the provisions of Section 36 (4-A) of the Customs Act-1969, Section 74  read with Section 21 of the Sales Tax Act-1990 and Section 36 of Income Tax Ordinance 2001 punishable under clauses (55) of Section 21(3) of the Customs Act-1969, Section 38 of the Sales Tax Act-1990 and Section 36 of Income Tax Ordinance 2001 and Section 7-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.