KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs3.58million allegedly by M/s Arsalan Hosiery, it is learnt.
The official sources told Customs Today that M/s Arsalan Hosiery imported two consignment of shirts , tee shirt and other articles under the PCT Heading 2578.2309 and got cleared from Port Qasim Karachi vide GDs No SK-76435 on January 17, 2017 by paying customs duty at 12.45 percent after claiming the benefit of SRO 699/2007.
However the subject goods are correctly classifiable under the PCT 2658.2304 attracting customs duty at 20 percent and income tax at 12 percent. Thus, by way of mis-declaration of classification, M/s Arsalan Hosiery evaded/short paid Rs3.58million.
Therefore the importer has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act-1969, Section 3, 6 & 8 read with Section 38 of the Sales Tax Act-1990 and Section 152 of Income Tax Ordinance 2001 punishable under clauses (1) and 16 of Section 156(1) of the Customs Act-1969, Section 33(5) of the Sales Tax Act-1990 and Section 148 & 182 of Income Tax Ordinance 2001 and Section 7A 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 Arsalan Hosiery for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes. The importer however failed to come up with any tangible proof and explanation and was also unable to refute the charges leveled by the department.
