KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has unearthed an evasion of duties and taxes of Rs14.67million by M/s Alam Alam & Sons Karachi, it is learnt.
The official sources told our reporter that M/s Alam Alam & Sons Karachi imported a consignment of different kinds of vehicles gas-kits from the UAE under the PCT Heading 8809.3451 and got it cleared from the Port Qasim (PQ) Karachi vide GDs on June 2, 2017 by paying customs duty of six percent after claiming the benefit of the SRO 698/2007.
However, the subject items are correctly classifiable under the Pakistan Custom Tariff 2307.2219 attracting customs duty of 12 percent and income tax of 10 percent thus, by way of mis-declaration of classification, M/s Alam Alam & Sons Karachi evaded/short-paid Rs14.67million.
So the importer has violated the provisions of Section 21 (6)) & (8A) of the Customs Act-1969, Section 18 read with Section 78 of the Sales Tax Act-1990 and Section 123 of Income Tax Ordinance 2001 punishable under clauses (24) and 32 of Section 76(2) of the Customs Act 1969, Section 127(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 Alam Alam & Sons Karachi for explaining and clarifying as to on what basis they have avoided/evaded the taxable duties 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.
