LAHORE: The Directorate of the Post Clarence Audit (PCA) has detected duty and tax evasion by M/s DWP Technologies (Private) Limited, Manga Mandi, Lahore, by way of mis-classification of telecommunication servers as computers servers.
The PCA has informed the importer that the Customs Collectorate Karachi has revealed that the importer got clearance of servers for telecommunication use by misclassifying under PCT heading 8471.5000 as server for computers, paying CD @ 0 percent, one percent and two percent instead of classifying under correct PCT heading 8517-6290 (other machines for the transmission or reception of voice, images or other data, including switching and routing apparatus) attracting CD @ 20 percent.
It was informed that the company, therefore, has deposited short payment worth Rs 7,551,781 (customs duty Rs 5,983,202, sales tax Rs 1001,491, additional sales tax Rs 179,496 and income tax Rs 387,592). The PCA has asked the company to pay the evaded amount of duty and taxes.
The PCA said that in case the company does not agree with the audit observation, the company has to provide a written clarification along with the supporting documents as well as all related import documents including copies of goods and declaration, commercial / pro forma invoices, L/Cs packing lists, contracts, purchase orders, catalogue/ literature.
The PCA also told the company representatives may appear in person or through accredited representatives to rebut the audit observation in the chamber of deputy director at the customs Houses.
It was intimated that if no one appears or no reply is received it shall be deemed that the part has nothing to offer in rebuttal of the observation and case shall be dealt as per law on the basis of facts available on record.
