KARACHI: Pakistan Customs Post Clearance Audit (PCA) has detected massive tax evasion to the tune of approximately Rs 47 million by M/s Right Way Trading Company through misusing of Fifth and Sixth Schedule.
Sources told Customs Today that PCA while auditing import data found that M/s Right Way Trading Company imported solar dry battery, solar LED lights, LED lights, solar panel etc through Model Customs Collectorate Appraisement-West and claimed benefits of Fifth Schedule and Sixth Schedule.
While, the exemptions are only available to SMD, LED lights with or without ballast with fittings and fixtures for promotion of the renewable energy technologies as per notification mentioned above. Whereas, clause 77 part-IV Second Schedule of Income Tax, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only, according to sources.
“The examination staff in their examination has not confirmed that the imported LED lights and batteries are for solar use. It appears from the examination report that the imported items are for general use, as these are operative/works under the normal thermal/hydel power sources normally used in Pakistan”, sources added.
Therefore, the importer M/s Right Way Trading Company Karachi has been advised to pay the short-paid levy of some Rs 47 million to the national kitty at the earliest.
