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PCA detects tax evasion of Rs 7m by M/s Wajahat Chemicals

PCA detects tax evasion of Rs 7m by M/s Wajahat Chemicals

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 7 million committed by M/s Wajahat Chemicals, it is learnt here on Monday.

Sources told Customs Today that M/s Wajahat Chemicals imported a consignment of cloth dying chemicals MYY 2, and different types of chemicals, and got it cleared from the PICT Karachi vide GDs on October 12, 2017 by paying customs duty at 12 percent after claiming the benefit of the SRO 561/2007.

However the subject items were correctly classifiable under the PCT 2308.2473 attracting customs duty at 16 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 7 million. The goods were cleared by Head Examiner Najeeb Alam.

Sources told Customs Today that the importer violated the provisions of Section 21 (8) & (3-A) of the Customs Act-1969, Section 25 read with Section 64 of the Sales Tax Act-1990 and Section 954 of Income Tax Ordinance-2001 punishable under clauses (258) and 156 of Section 471(9) of the Customs Act-1969, Section 82 of the Sales Tax Act-1990 and Section 89 & 178 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 unearthed a number of cases during last month of January 2018.