KARACHI: Pakistan Customs Directorate of Post Clearance Audit (PCA) in its latest and significant move has established audit observations amounting to Rs70 million against M/s Warid Telecom (Pvt) Limited.
According to details, the authorities concerned of Post Clearance Audit (PCA) while following the directives of Director PCA Gul Rehman started to scrutinize the import data of M/s Warid Telecom (Pvt) Limited of the previous years.
While scrutinizing the import data, it has been observed that the M/s Warid Telecom (Pvt) Limited bearing NTN Number 2071329, imported telecommunication equipments including ASR 5000 Multimedia Core Platform with all standard accessories and cleared the same vide Goods Declaration (GD) No. KPAF-HC-1471 dated July 10, 2014 from Air Freight Unit (AFU) of MCC-Preventive by mis-declaring the goods under PCT 8471.5000 attracting Customs Duty @1 percent, whereas the goods are correctly classifiable under PCT heading 8517.6290 chargeable to Customs Duty @20per cent.
Thus, the importer M/s Warid Telecom (Pvt) Limited by mis-declaration of classification have evaded/short paid Customs Duty amounting to Rs16.89 million; Sales Tax 2.87 million and Income Tax 1.08 million makes a evaded amount to Rs20.84 million.
During the process of scrutiny, the authorities concerned of PCA have also found that the importer M/s Warid Telecom (Pvt) Limited on August 29, 2014 cleared a consignment of telecommunication equipments containing Dense Wave Division and Multiplexing System through GD No KAPW-HC-30147 from MCC-Appraisement (West) by mis-declaring the goods under PCT Heading 8517.6970 attracting Customs Duty @1per cent, whereas the goods are correctly classifiable under PCT Heading 8517.6290 chargeable to CD @20per cent.
Thus, the importer M/s Warid Telecom (Pvt) Limited through mis-declaration of classification have evaded Customs Duty Rs 14.75 million; Sales Tax Rs 2.5 million and Income Tax Rs 0.94 million, which amounting to Rs18.20 million.
Similarly, the Post Clearance Audit-Customs also found that the importer M/s Warid Telecom (Pvt) Limited is also involved in tax evasion of Rs 28.34 million and Rs 1.55 million in terms of Customs Duty (CD), Sales Tax and Income Tax respectively.
The PCA authorities in audit observations found that the importer M/s Warid Telecom (Pvt) Limited imported telecommunication equipments including 6000 Cellular Transmission System and Cellular Telephone System Components Network claiming duty taxes chargeable to CD @20per cent amounting Rs22.96 million; Sales Tax Rs 3.9 million and Income Tax Rs 1.47 million totaling Rs 28.34 million and Rs1.55 million shortfall in terms of duty/taxes including CD 1.25 million; Sales Tax Rs0.22 million and Income Tax Rs 80859.
Continuing its efforts, Post Clearance Audit during its audit observation further transpired that the importer M/s Warid Telecom (Pvt) Limited cleared two consignments of telecommunication equipments including telecom infrastructure from Air Freight Unit (AFU) on September 13, 2014 under PCT Heading 8517.6970 attracting CD @1per cent whereas, the goods are correctly classifiable under PCT Heading 8517.6290 chargeable to CD @20per cent.
Thus, the importer M/s Warid Telecom (Pvt) Limited have evaded CD Rs 0.67 million, Sales Tax Rs 0.11 Million and Income Tax of Rs 43642 which makes the total of Rs 0.83 million and in another GD i.e. KPAF-HC-10364 it was observed that duty/taxes in terms of CD Rs 0.92 million; Sales Tax of Rs 0.156 million and Income Tax of Rs 59319 which makes the total of Rs1.13 million.
In the light of the aforementioned observations, the Deputy Director PCA Adnan Rafiq through a letter has informed the importer M/s Warid telecom (Pvt) Limited to pay above mentioned short paid amount of duty/taxes within 10days of receipt of this letter positively.
In the letter, the PCA authorities concerned have also given an opportunity to the importer that in case of any contention, the importer is requested to provide self explanatory written clarification along with supporting documents i.e. Commercial Performa Invoice, Contract and Catalogue/literature on or before April 3, 2015.
The letter further stated that in case no one appears or no reply received on the aforesaid date, it shall be deemed that the importer have nothing to offer in rebuttal of this audit observations and the case shall be dealt as per law on the basis of facts available on record.
