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PCA detects Rs7.45m tax evasion by M/s Hunaiza Garments & Export

PCA detects Rs7.45m tax evasion by M/s Hunaiza Garments & Export

KARACHI: The Directorate of Customs Post Clearance Audit on Monday detected duties and tax evasion of Rs7.45 million by M/s Hunaiza Garments & Export, Malir Karachi.

Sources told Customs Today that M/s Hunaiza Garments & Export imported a consignment of overlock, sewing and embroidery machines and got it cleared from the QICT Karachi vide GD on December 17, 2017 by paying customs duty low at 8 percent after claiming the benefit of the SRO 557/2007.

However, the subject items were correctly classifiable under the PCT 2487.3507  attracting customs duty at 12 percent and income tax at 10 percent; thus, by way of mis-declaration of classification, the company evaded/short-paid Rs7.45 million. The goods were cleared by Appraiser Sultan Mehmood.

Sources said that the importer violated the provisions of Section 79 (2-A) of the Customs Act-1969, Section 47  read with Section 82 of the Sales Tax Act-1990 and Section 45 of Income Tax Ordinance 2001 punishable under clauses (23) of Section 22(3) of the Customs Act-1969, Section 48 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.