KARACHI: The Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs6.50 million by M/s Maqsood International, it is learnt.
The official sources told Customs Today that M/s Maqsood International imported a consignment of milk powder and imported milk cane from Malaysia under the PCT Heading 2203.4490 and got it cleared from the Port Qasim Karachi vide GDs on August 27, 2017 by paying customs duty at 8 percent after claiming the benefit of SRO 714/2007.
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However, the subject items are correctly classifiable under the PCT 2309.6708 attracting customs duty at 14 percent and income tax at 12 percent thus by way of mis-declaration of classification, M/s Maqsood International evaded/short-paid Rs6.50 million.
So the importer has violated the provisions of Section 38 (1) (4) & (6A) of the Customs Act-1969, Section 12, 8 & 18 read with Section 46 of the Sales Tax Act-1990 and Section 156 of Income Tax Ordinance 2001 punishable under clauses (18) and 22 of Section 134(1) of the Customs Act 1969, Section 38(9) of the Sales Tax Act-1990 and Section 152 & 189 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 Maqsood International 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.
