KARACHI: The Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 14.94 million by M/s Happy Kids Garments & Export.
Sources told Customs Today on Wednesday that M/s Happy Kids Garments & Export imported a consignment of imported jeans fabrics, shirts pieces and paints clips and got it cleared the same from QICT Karachi vide GDs on February 21, 2018 by paying customs duty low at 10 percent after claiming the benefit of the SRO 554/2007.
However, the subject items were correctly classifiable under the PCT 3548.2407 attracting customs duty at 16 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 14.94 million. The goods were cleared by Appraiser Ishtiaq Lashari.
Sources told that the importer violated the provisions of Section 23 (8-A) of the Customs Act-1969, Section 37 read with Section 78 of the Sales Tax Act-1990 and Section 31 of Income Tax Ordinance 2001 punishable under clauses (92) of Section 47(2) of the Customs Act-1969, Section 34 of the Sales Tax Act-1990 and Section 77 of Income Tax Ordinance 2001 and Section 7-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.
