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Tax evasion of Rs6.50m committed by M/s Qadeer uncovered

Tax evasion of Rs6.50m committed by M/s Qadeer uncovered

KARACHI: The Directorate of Customs Post Clearance Audit has detected an evasion of Rs6.50million of duties and taxes committed by M/s Qadeer and Sons Karachi, it is learnt.

Sources told Customs Today that M/s Qadeer and Sons Karachi imported a consignment of imported wooden-furniture pieces and got it cleared from the PICT Karachi vide GDs on November 12, 2017 by paying customs duty at six percent after claiming the benefit of the SRO 567/2007.

However the subject items are correctly classifiable under the PCT 2305.2819 attracting customs duty at 10 percent and income tax at 12 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs6.50million. The goods were cleared by Head Examiner Ovaise Mengal.

Sources said the importer violated the provisions of Section 58 (7) & (8A) of the Customs Act-1969, Section 16 read with Section 58 of the Sales Tax Act-1990 and Section 188 of Income Tax Ordinance-2001 punishable under clauses (240) and 162 of Section 624 (8) of the Customs Act-1969, Section 79 of the Sales Tax Act-1990 and Section 88 & 139 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.

It is necessary to mention here that the Post Clearance Audit has detected a number of cases during the last month of December.