KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected an evasion of duties and taxes of Rs7.85million committed by M/s Aslam Bawanai and Company, it is learnt.
The official sources told reporter that M/s Aslam Bawanai and Company imported a consignment of used TV and computer monitors and electronic devices under the PCT Heading 2709.2387 and got it cleared from the Karachi International Container Terminal vide GDs on May 18, 2017 by paying customs duty at 12 percent after claiming a benefit of SRO 721/2007.
However the subject electronic scrap is correctly classifiable under the PCT 2786.6523 attracting customs duty (CD) at 14 percent and income tax at eight percent. Thus by way of mis-declaration of classification, M/s Aslam Bawanai and Company evaded Rs7.85million.
So the importer has violated the provisions of Section 38 (1) (2) & (4A) of the Customs Act-1969, Section 8,12 & 14 read with Section 47 of the Sales Tax Act-1990 and Section 152 of the Income Tax Ordinance 2001 punishable under clauses (9) and 17 of Section 157(1) of the Customs Act-1969, Section 38 (9) of the Sales Tax Act-1990 and Section 149 & 181 of the 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 the Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Aslam Bawanai and Company 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 evidence and explanation and was also unable to refute the charges leveled by the department.
