KARACHI: The Directorate of Post Clearance Audit (PCA), Customs has detected evasion of sales tax to the tune of Rs 4.56 million on import of silos classifiable under PCT Heading 9406.0030.
Sources said that PCA while auditing the data of the importer M/s Salwa Feed Mills Private Limited, it was found that the company availed concession of 8th Schedule (sales tax) and paid reduced tax at 5 percent on the import of “Grain Storage Silos with all standard accessories.”
The importer had imported silos from the United States of America with Goods Declaration (GD) No. KPPI-HC-4005 dated July 11, 2015, sources told Customs Today.
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 the rate of 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.
