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PCA detects tax evasion of Rs 8.5m by M/s Shakeel Ceremaics Tiles

PCA detects tax evasion of Rs 8.5m by M/s Shakeel Ceremaics Tiles

KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 8.50 million by M/s Shakeel Ceramics Tiles, it is learnt here.

Sources told Customs Today that M/s Shakeel Ceramics Tiles imported a consignment of fancy floor tiles, and got it cleared from the Port Qasim Karachi vide GDs on December 4, 2017 by paying customs duty very low at 6 percent after claiming the benefit of the SRO 552/2007.

However, the subject items were correctly classifiable under the PCT 2407.2497  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 Rs 8.50 million. The goods were cleared by appraiser Farooq Nasir Balti.

Sources said that the importer violated the provisions of Section 42 (9-A) of the Customs Act-1969, Section 66 read with Section 14 of the Sales Tax Act-1990 and Section 317 of Income Tax Ordinance 2001 punishable under clauses (221) and 149 of Section 214(5) of the Customs Act-1969, Section 66 of the Sales Tax Act-1990 and Section 22 & 14 of Income Tax Ordinance 2001 and Section 5-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.

According to source Directorate of Customs Post Clearance Audit, Director PCA Nadeem Memon has said all pending cases will be clear in current month and next month.