KARACHI: The Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs 14.30 million allegedly by M/s Rubi Traders, Karachi, it is learnt.
The official sources told Customs Today that M/s Rubi Traders imported a consignment of radiators for different vehicles from Malaysia under the PCT Heading 8809.3451 and got it cleared from the Port Qasim Karachi vide GDs on October 2, 2017 by paying customs duty at 6 percent after claiming the benefit of SRO 697/2007.
However, the subject items are correctly classifiable under the Pakistan Custom Tariff 2307.2218 attracting customs duty at 12 percent and income tax at 10 percent thus by way of mis-declaration of classification, M/s Rubi Traders evaded/short-paid Rs 14.30 million.
Sources told that the importer has violated the provisions of Section 22 (6)) & (8A) of the Customs Act-1969, Section 19, read with Section 78 of the Sales Tax Act-1990 and Section 124 of Income Tax Ordinance 2001 punishable under clauses (24) and 32 of Section 71(2) of the Customs Act 1969, Section 122(9) of the Sales Tax Act-1990 and Section 67 & 180 of Income Tax Ordinance 2001 and Section 7-A 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.
Accordingly, an audit observation was issued to M/s Rubi Traders for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes. The importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the department.
