KARACHI: The Customs’ Directorate of Post Clearance Audit (PCA) has detected sales tax evasion of Rs 1.97 million on import of silos classifiable under PCT Heading 9406.0030.
The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the PCA Directorate.
The importer M/s Pak Agro Oil Mills Pvt Ltd had imported silos from Turkey with goods declaration (GD) KPPI-HC-57480 dated May 12, 2015, sources told Customs Today.
According to sources, the importer M/s Pak Agro Oil Mills availed concession of 8th Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of grain storage silos with all standard accessories under PCT Heading 9406.0030.
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 qualify the definition of machinery and equipment, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to sales tax 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.
