KARACHI: The Pakistan Customs Directorate of Post Clearance Audit (PCA) has detected two Karachi-based companies involved in sales tax evasion of Rs 7.64 million on the import of silos, it is learnt.
Official sources said that PCA, by investigating the clearance data, found that M/s Daniyal Industries Private Limited, Karachi and M/s Al-Hamza Flour Mills, Karachi imported silos under PCT Heading 9406.0030, allegedly evaded taxes worth millions of rupees.
As per details, the importer M/s Ali Daniyal Industries had imported silos from Turkey with Goods Declaration (GD) No. KPPI-HC-54036 dated 24-4-2015, while the importer M/s Al-Hamza Flour Mills imported silos from the United States of America (USA) with Goods Declaration (GD) No. KPPI-HC-15368 dated 18-9-2014 and GD No. KPPI-HC-12275 dated 9-9-2014.
The 8th 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 reports to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, the sources further informed.
