ISLAMABAD: Directorate of Internal Audit has detected duty and tax evasion of Rs5.08 million by M/s Yaqoob Hanif Trading Company.
Sources told Customs Today that during the audit of the imports via Peshawar Dry Port for the financial year 2013-14, the data of M/s Yaqoob Hanif Trading Company revealed that the textile fabric was imported on payment of sales tax at reduced rate; however, while making assessment of duty and taxes the Customs authority realized the sales tax rate 2% instead of 5%.
Meanwhile under the SRO 1125(1)/20111, import of the finished articles of textile ready for use by general public, will be charged to sales tax at rate of 5% and the values addition tax rate of 2%, which resulted into the government revenue evasion of Rs5.08 million.
Sources said that it is established that M/s Yaqoob Hanif Trading Company, Peshawar as importer has not paid duty and taxes and therefore recoverable under the provision of section 32(3A) of the Customs Act 1969 Section 3 of the Sales Tax Act 1990, and also Section 148 of the Income Tax Ordinance 2001.
After detecting tax evasion, Directorate of Internal Audit directed the company to clear the outstanding amount at the earliest.
