KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has uncovered duties and tax evasion of Rs16.58million allegedly committed by M/s Azam Suleman Enterprises, it is learnt.
The official sources told our reporter that M/s Azam Suleman Enterprises imported a consignment of various types of heavy duty generator parts under the PCT Heading 2356.3805 and got it cleared from the Port Qasim Karachi vide GDs on November 11, 2017 by paying customs duty at 8 percent after claiming a benefit of SRO 566/2007 by Appraiser Khawar Ayubi.
However subject item is correctly classifiable under the PCT 2605.3486 attracting customs duty at 12 percent and income tax at 14 percent. By mis-declaration, M/s Azam Suleman Enterprises evaded Rs16.58million tax.
So the importer has violated the provisions of Section 36 (8) & (8B) of the Customs Act-1969, Section 8, 9 & 18 read with Section 77 of the Sales Tax Act-1990 and Section 130 of Income Tax Ordinance 2001 punishable under clauses (9) and 45 of Section 167(9) of the Customs Act-1969, Section 28 (4) of the Sales Tax Act-1990 and Section 132 & 166 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of Sales Tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Azam Suleman Enterprises for explaining and clarifying as to on what basis they have avoided/evaded the taxable duties and taxes.
