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PCA detects duty, tax evasion allegedly by Wateen Telecom

byM Hayat
29/08/2016
in Lahore, Latest News
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LAHORE: Directorate of Post Clarence Audit (PCA) has detected duty and tax evasion allegedly by M/s Wateen Telecom (Private) Limited by mis-classifying telecommunication servers as computers servers.

According to details, during the scrutiny of import data of the importer it was revealed that the importer got clearance of the imported servers for telecommunication use by misclassifying under PCT heading 8471.5000 as server for computers, paying customs duty @ 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 customs duty @ 20 percent.

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It was informed that the company, therefore, has deposited short payment worth Rs 10, 50, 567 (customs duty Rs864,749, sales tax Rs105,311, additional sales tax Rs25,942 and income tax Rs54565). 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.

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