KARACHI: The Directorate of Post Clearance Audit (PCA), Customs has exposed sales tax evasion of Rs 150,000 on import of silos.
Sources said that the PCA, while the scrutinising the import data of silos covers PCT Heading 9406.0030, found that the importer M/s Interlink Corporation availed concession of 8th Schedule of sales tax and paid reduced rates of tax at 5 percent on the import of “Grain Storage Silos with all standard accessories”
The importer M/s Interlink Corporation had imported silos from the United States of America with Goods Declaration (GD) No. KPPI-HC-40741 dated 2-2-2015.
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 report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, the sources further informed.
