KARACHI: Directorate of Customs Post Clearance Audit Director Nadeem Memon detected duties and tax evasion of Rs10.58 million by M/s Kinza Fabrics & Exports located in SITE, Karachi, it is learnt here.
Sources told Customs Today on Friday that M/s Kinza Fabrics & Exports imported a consignments of different kinds of printed liquid colors, fancy buttons, sleeves cuff, and embroidery threads and got it cleared from the QICT on January 13, 2017 by paying customs duty at 8 percent after claiming the benefit of the SRO 557/2007.
However, the subject goods were correctly classifiable under the PCT 5478.2507 attracting customs duty at 12 percent and income tax at 10 percent, thus by way of mis-declaration of classification the company evaded/short-paid Rs10.58 million. During the month of January, 2017, the consignment were cleared by Head Examiner Abdul Haq.
Sources said that the importer violated the provisions of Section 54,78 & 98 (4 and 7-A) of the Customs Act-1969, Section 14 read with Section 10 of the Sales Tax Act-1990 and Section 54 of Income Tax Ordinance 2001 punishable under clauses (458) of Section 31(2) of the Customs Act-1969, Section 78 of the Sales Tax Act-1990 and Section 62 of Income Tax Ordinance 2001 and Section 6-B of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.
