KARACHI: The Directorate General of Customs Intelligence and Investigation-Enforcement has prepared a contravention report against M/s Zorain Enterprises, Karachi, for evading taxes of Rs 493,108.
As per details, Customs Intelligence-Enforcement Director Yaqoob Mako has sent a contravention report to the Collectorate of Customs Adjudication-I against M/s Zorain Enterprises on claiming unlawful zero rated exemption of sales tax under 6th Schedule of Sale Tax Act 1990’ while importing the processed cheese.
According to the report, the company imported processed cheese with HS code 0406.3000 bearing brand “Teama in retail packing” against GD no KPH-HC 21173-21102015, which was cleared from Port Qasim Customs, Karachi.
The report mentions that the customs assessing staff extended benefit of zero-rated exemption of sales tax despite the fact that the said exemption is available to processed cheese HS code 0406-3000 excluding that sold in retail packing under a brand name.
The report stated that it has become clear that importer has claimed the exemption of 6th Schedule with motive of evasion of taxes to the tune of Rs 493108, including Rs 395 417 as sales tax, Rs 69779 additional sales tax and Rs 27912 in wake of withholding tax (WHT), which are recoverable from the importer.
