LAHORE: The Post Clarence Audit (PCA) has detected Rs 9.4 million duty/taxes evasion by Zhong Xing Telecom Pakistan Private Limited through misclassification of servers for telecommunication use as servers for computers.
The PCA informed that import clearance data of Model Customs Collectorate Lahore and Islamabad for the duration of January 2012 and onward revealed that the importer got clearance of server for telecommunication use by misclassifying under PCT Heading 8471.5000 as server for computers, paying zero percent customs duty 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 20 percent customs duty.
It was said that the company deposited short payment worth Rs 9,482,763 that include Rs 7,486,882 customs duty, Rs 1,269, 193 sales tax, Rs 224,606 additional sales tax and Rs 502,082 income tax) as detailed in annexure A.
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, it has to provide a written clarification along with the supporting documents as well as all related import documents including copies of goods declaration, commercial/proforma 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.
