KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has detected tax evasion of at least Rs 12.1 million by M/s Notus Lahore on under-invoicing.
The PCA, on scrutiny / audit of import data, found that M/s Notus, which is located in D, Model Town, Lahore, NTN # 1852454-7 imported “Logic Integrated Circuit Board with Processor LCD with all standard accessories” under PCT heading 8538.9090 through MCC Appraisement (West), Custom House, Karachi at a declared unit value of $2.25 per piece and $2.0 per piece from China.
It is evident from the history of the importers that a case of under valuation of the identical item from same origin and same supplier found and adjudicated vide Order-in-Original No. ONO – 135705–10102013 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of $5.5 per piece and the goods were assessed and cleared by the importers on the found value.
Further the importer claimed the assessment under PCT heading 8538.9090 subjected to custom duty at the rate of 15 percent which is not correct. The correct PCT heading is 8537.1090 where leviable custom duty is at the rate of 25 percent.
Thus, M/s Notus, Lahore were required to pay custom duty at the rate of 25 percent instead of 15 percent on the above mentioned Goods Declaration decide they were required to pay custom duty and other taxes at the value of $5.5 per piece as found at the time of examination, adjudicated and cleared by the importers on the payment of duty and taxes on the found value.
This resulted in short levy of Rs. 5.7 million in custom duty, Rs 4.05 million in sales tax, Rs 799,749 in additional sales tax and Rs 1.4 million in income tax. Total short levy of Rs 12.1 million. The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this office.
