KARACHI: The Directorate of Post Clearance Audit (PCA), Customs has detected Rs 3.81 million sales tax evasion on import of silos classifiable under PCT Heading 9406.0030.
The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the PCA.
The importer M/s Dummer Flour Mills Private Limited, Faisalabad had imported silos from Turkey with Goods Declaration (GD) KPPI-HC-46436 dated March 13, 2015, sources told Customs Today.
Sources revealed that the importer M/s Dummer Flour Mills availed concession of 8th Schedule and paid reduced rates of sales tax at 5 percent on the import of “Grain Storage Silos with all standard accessories” under PCT Heading 9406.0030.
The Eighth Schedule (sales tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable at 17 percent.
After detection of the contravention, the Directorate of PCA has forwarded the report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, the sources further informed.
