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PCA unearths tax evasion of Rs6.65m as duties and taxes

PCA unearths tax evasion of Rs6.65m as duties and taxes

KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected 14 new cases in 22 days of November.

Source said that Director PCA Nadeem Memon is showing an excellent performance in the month of November. Today the Directorate of Customs Post Clearance Audit (PCA) has detected an evasion of duties and taxes of Rs6.65million committed by M/s Saleem Dana Wala & Sons, it is learnt.

The official sources told reporter that M/s Saleem Dana Wala & Sons imported a consignment of condensers, circuit breakers and copper coil under the PCT Heading 3409.2389 and got it cleared from ( KICT) the Karachi International Container Terminal vide GDs on June 22, 2017 by paying customs duty of eight percent after claiming a benefit of the SRO 722/2007.

However subject items are correctly classifiable under the PCT 3506.6735 attracting customs duty (CD) at 12 percent and income tax at six percent. Thus by way of mis-declaration of classification, M/s Saleem Dana Wala & Sons evaded Rs6.65million.

So the importer has violated the provisions of Section 26 (1) (3) & (6A) of the Customs Act-1969, Section 2, 6 and 9 read with Section 36 of the Sales Tax Act-1990 and Section 154 of the Income Tax Ordinance 2001 punishable under clauses (6) and 19 of Section 152(1) of the Customs Act-1969, Section 40 (5) of the Sales Tax Act-1990 and Section 150 & 167 of the Income Tax Ordinance 2001 and Section 9-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 the Income Tax Ordinance 2001.

Accordingly, an audit observation was issued to M/s Saleem Dana Wala & Sons for explaining and clarifying as to on what basis they have evaded the taxable duties and taxes. The importer however failed to come up with any tangible proof and explanation and was also unable to refute the charges leveled by the department.