KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 12.94 million by M/s Wadiha Watches International, it is learnt here.
Sources told Customs Today that M/s Wadiha Watches International imported a consignment of different kinds of watches and wall clock, alarm clock and systemic calculators and got it cleared from the PICT Karachi vide GDs on June 19, 2017 by paying customs duty very low at 8 percent after claiming the benefit of the SRO 577/2007.
However, the subject items were correctly classifiable under the PCT 2408.3214 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 12.94 million. The goods were cleared by Appraiser Noor ul Islam Khan.
Sources told that the importer violated the provisions of Section 19 (2-A) of the Customs Act-1969, Section 35 read with Section 69 of the Sales Tax Act-1990 and Section 12 of Income Tax Ordinance 2001 punishable under clauses (87) and 98 of Section 26(9) of the Customs Act-1969, Section 78 of the Sales Tax Act-1990 and Section 28 & 35 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 Post Clearance Audit (PCA) will audit 16 more cases during the month of May.
