LAHORE: Directorate of Post Clarence Audit (PCA) has detected duty and tax evasion by M/s Pakistan Telecommunication Company Limited by way of mis-classification of servers from telecommunication use as servers for computers.
Sources told Customs Today that during scrutiny of import data it was revealed that the importer got clearance imported server for telecommunication use by mis-classifying 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.
It has been determined that the company has deposited short payment of Rs12,274,549 (CD Rs 10,188,228, sales tax Rs 1,157,187, additional sales tax Rs305,649 and income tax Rs623, 488 as detailed in annexure A.
The PCA authorities have intimated the company to pay the evaded amount of duty and taxes.
The PCA said that that in case the company don 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 list, 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 on the date in the chamber of deputy director at the Customs Houses.
It was intimated further 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 with the PCA authorities.
