KARACHI: The Directorate of Post Clearance Audit (PCA), Customs has traced evasion of sales tax to the tune of Rs 1.42 million on import of silos classifiable under PCT Heading 9406.0030.
The PCA has detected evasion of sales tax while scrutinising the import data pertaining to silos.
The importer M/s Al-Meezan Poultry Feeds had imported Silos from Turkey with Goods Declaration (GD) KPPI-HC-58226 dated May 15, 2015, sources told Customs Today.
They added that importer M/s Al-Meezan Poultry Feeds, Karachi availed concession of Eighth Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of “Grain Storage Silos with all standard accessories” under PCT Heading 9406.0030.
The Eighth Schedule (sales tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to Sales Tax at 17 percent.
After detection of the contravention, the Directorate of PCA has forwarded the report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, the sources further informed.
