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PCA detects tax evasion of Rs 7m by M/s Saleem Garments & Exports

PCA detects tax evasion of Rs 7m by M/s Saleem Garments & Exports

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 7 million by M/s Saleem Garments and Export, Karachi, it is learnt.

Sources told Customs Today that M/s Saleem Garments and Export imported a consignment of printing colours and chemicals, from Malaysia and got it cleared from the PICT Karachi vide GDs on October 18, 2017 by paying customs duty at 8 percent after claiming the benefit of the SRO 562/2007.

However, the subject items were correctly classifiable under the PCT 5608.7809, 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 Rs 7 million. The goods were cleared by Head Examiner Ovaise Mengal.

Sources said that the importer violated the provisions of Section 56 (2) & (8A) of the Customs Act-1969, Section 19  read with Section 52 of the Sales Tax Act-1990 and Section 185 of Income Tax Ordinance 2001 punishable under clauses (239) and 172 of Section 647(7) of the Customs Act-1969, Section 78 of the Sales Tax Act-1990 and Section 78 & 136 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 months of December.