MULTAN: Customs Adjudication will hear the case of tax evasion of Rs 16.071 million against Fatima Fertilizer Limited on 25th June, 2015 (today). Customs authorities has detected the tax evasion during audit against Fatima Fertilizers Limited Multan on the various import consignments.
According to details Fatima Fertilizer Limited Multan had imported 22 various consignments including electricity multi-core cables, steel pipes, steel structure ladder scaffolding, tube scaffolding, lubricants, welding wires etc.
Fatima Fertilizer Company Limited is the renowned business group established in 2001. Fatima Fertilizer is one of the biggest fertilizer groups of the country which is promoting green field projects in the country with an aim to encourage investors in the field of agriculture for providing the growing demand of fertilizer in the country.
Fatima Fertilizer Limited had cleared 22 import consignments from Model of Customs Collectorate Multan against the disallowed exemptions from the customs duty in excess of 5% sales tax and income tax at the @ 0% under serial no. 20 & 21 of SRO 575(I)/2006 .
According to law imported goods were not fall in the range of machinery, equipment, spares and accessories required for the production of manufacturing or production of any goods.
Post Clearance Audit has found during the audit consignments of Fatima Fertilizer that exemption of customs duty in excess of 5 % and whole of sale tax on import of machinery, equipment, spares accessories of under section 84,85 on Pakistan Customs tariff required for the initial installation balancing ,modernization, replacement, or expansion of oil refining downstream products are not notified by the Federal Board of Revenue.
The imported goods were lying in the in the list of locally manufactured items notified under SRO 575(I).Therefore statutory rate of customs duty ,sales tax and withholding tax were imposed on the import consignments of Fatima Fertilizer Limited Multan.
The net tax evasion was found to be Rs.16.071 million during import consignments include the amount of Customs duty RS. 7,589,289/-, sales tax Rs.8, 153,906/- and Income tax Rs.328, 741/-. The collector customs Adjudication Saleem Akhtar Ranjha will resume the hearing to the Fatima Fertilizer Limited Multan on 25th June in the tax evasion of Rs.16.071 million.
