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PCA detects tax evasion of Rs9.58m by M/s Wajih Sanitary Hyderabad

PCA detects tax evasion of Rs9.58m by M/s Wajih Sanitary Hyderabad

KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 9.58 million allegedly by M/s Wajih Sanitary Hyderabad, it is learnt here.

Official sources told Customs Today that M/s Wajih Sanitary Hyderabad imported a consignment of imported sanitary items under the PCT Heading 5847.2508 and got it cleared from Port Qasim Karachi vide GDs on October 22, 2017 by paying customs duty at 8 percent after claiming a benefit of SRO 568/2007 by the hand of Examiner Imran A Khan.

However, the subject item is correctly classifiable under the PCT 2548.2509 attracting customs duty at 12 percent and income tax at 14 percent. Thus, by way of mis-declaration of classification, M/s Wajih Sanitary Hyderabad evaded/ short-paid Rs 9.58 million.

So the importer has violated the provisions of Section 58 (4) & (7B) of the Customs Act-1969, Section 4, 7 read with Section 57 of the Sales Tax Act-1990 and Section 149 of Income Tax Ordinance 2001 punishable under clauses (8) and 48 of Section 169(8) of the Customs Act-1969, Section 32 (7) of the Sales Tax Act-1990 and Section 140 & 146 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.

Accordingly, an audit observation was issued to M/s sWajih Sanitary Hyderabad for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.