KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs 12.75 million allegedly by M/s Irfan Associate, it is learnt.
Sources told Customs Today that M/s Irfan Associate imported a consignment of medical accessories (include electronic wheelchairs, thermometer, and others) under the PCT Heading 2788.8901 and got it cleared from the Pakistan International Container Terminal (PICT) Karachi vide GDs on August 16, 2017 by paying customs duty at 8 percent after claiming the benefit of SRO 711/2007.
However, the subject items are correctly classifiable under the PCT 2765.7601 attracting customs duty (CD) at 12 percent and income tax at 16 percent. Thus, by way of mis-declaration of classification, M/s Irfan Associate evaded/ short-paid Rs 12.75 million.
So the importer has violated the provisions of Section 52 (2) (8) of the Customs Act-1969, Section 8, 9 read with Section 46 of the Sales Tax Act-1990 and Section 161 of Income Tax Ordinance 2001 punishable under clauses (16) and 22 of Section 158(1) of the Customs Act-1969, Section 22 (8) of the Sales Tax Act-1990 and Section 132 & 186 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 Irfan Associate for explaining and clarifying as to on which basis they have avoided/evaded the taxable duty and taxes.