KARACHI: While analyzing the post clearance data of importer, the Pakistan Customs Directorate of Post Clearance Audit (PCA) has found M/s Islamabad Feeds Private Limited involved in tax evasion amounting to Rs 16.49 million on import of silos classifiable under PCT Heading 9406.0030.
Official sources informed Customs Today that the importer M/s Islamabad Feeds Pvt Ltd had imported silos from the United States with Goods Declaration (GD) No. KPPI-HC-58937 dated May 19, 2015 and GD KPPI-HC-57688 dated May 13, 2015.
They added that the importer availed concession of 8th 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 8th 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.
