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PCA detects tax evasion of Rs8.17m by M/s Shangi Auto Parts Karachi

PCA detects tax evasion of Rs8.17m by M/s Shangi Auto Parts Karachi

KARACHI: The Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 8.17 million by M/s Shangi Auto Parts, Karachi, it is learnt here.

Sources told Customs Today that M/s Shangi Auto Parts imported two consignments of  new and used vehicles engine and different kinds of auto parts and  got it cleared from the PICT Karachi vide GDs 5627 on December 22, 2017 by paying customs duty low at 10 percent after claiming the benefit of the SRO 558/2007.

However, the subject items were correctly classifiable under the PCT 3548.3504  attracting customs duty at 14 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 8.17  million. The goods were cleared by Appraiser Umar Farooq.

Sources told that the importer violated the provisions of Section 58 (6-A) of the Customs Act-1969, Section 28  read with Section 84 of the Sales Tax Act-1990 and Section 27 of Income Tax Ordinance 2001 punishable under clauses (27) of Section 18(5) of the Customs Act-1969, Section 19 of the Sales Tax Act-1990 and Section 49 of Income Tax Ordinance 2001 and Section 9-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.