KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duty and tax evasions of Rs 9.5 million allegedly by M/s Alwani M Traders, it is learnt.
Official sources told Customs Today that M/s Alwani M Traders imported a consignment of different kinds of surgical items under the PCT Heading 2548.2504 and got it cleared from the Port Qasim Karachi vide GDs on November 17, 2017 by paying customs duty at 6 percent after claiming a benefit of SRO 566/2007 through Examiner Ayoub Khaskheli.
However, the subject item is correctly classifiable under the PCT 2558.2541, attracting customs duty at 10 percent and income tax at 12 percent. So by doing mis-declaration of classification, M/s Alwani M Traders evaded to pay Rs 9.5 million.
So the importer has violated the provisions of Section 49 (5) & (6B) of the Customs Act-1969, Section 5, 8 read with Section 56 of the Sales Tax Act-1990 and Section 132 of Income Tax Ordinance 2001 punishable under clauses (6) and 49 of Section 160(7) of the Customs Act-1969, Section 32 (4) of the Sales Tax Act-1990 and Section 140 & 147 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 the Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Alwani M Traders for explaining and clarifying as to on what basis they have avoided/evaded the taxable duties and taxes.
