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PCA detects duty, tax evasion allegedly by Warid Telecom

byM Hayat
18/08/2016
in Lahore, Latest News
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LAHORE: Directorate of Post Clarence Audit (PCA) has detected duty and tax evasion allegedly by M/s Warid Telecom (Private) Limited by way of mis-classification of telecommunication servers as computers servers.

According to details, during scrutiny of import data of the company it was revealed that the importer got clearance of imported servers for telecommunication use by misclassifying under PCT heading 8471.5000 as server for computers, paying customs duty @ 0 percent, one percent and two percent instead of classifying under correct PCT heading 8517-6290 (other machines for the transmission or reception of voice, images or other data, including switching and routing apparatus) attracting customs duty @ 20 percent.

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It was informed that therefore the company has deposited short payment worth Rs 21,383,063 CD Rs 18,890,255, sales tax Rs 2,871,343, additional sales tax Rs 506,708 and income tax Rs 1,114,757) as detailed in annexure A.

The PCA has asked the company to pay the evaded amount of duty and taxes within 10 days of receipt of the letter.

The PCA said that that incase the company don not agree with the audit observation, the company has to provide a written clarification along with the supporting documents  as well as all related import documents including copies of goods and declaration, commercial / pro forma invoices, L/Cs packing lits, contracts, purchase orders, catalogue/ literature.

The PCA also told the company representatives may appear in person or through accredited representatives to rebut the audit observation on the date in the chamber of deputy director at the customs Houses.

It was intimated that if no one appears or no reply is received it shall be deemed that the part has nothing to offer in rebuttal of the observation and case shall be dealt as per law on the basis of facts available on record.

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