KARACHI: The Pakistan Customs’ Directorate of Post Clearance Audit (PCA) has detected tax evasion of Rs 7.19 million in term of sales tax on import of silos comes under PCT Heading 9406.0030.
Sources informed Customs Today that the importer M/s Ghani Hilal Feed Mill Private Limited, Lahore availed concession of 8th Schedule of sales tax and paid reduced rates of sales tax at 5 percent on the import of “Grain Storage Silos with all standard accessories”.
The importer M/s Ghani Hilal Feed had imported silos from China with Goods Declaration (GD) No. KPPI-HC-53916 dated 23-4-2015, GD KPPI-HC-51772 dated 13-5-2015 and KPPI-HC-51159 dated 9-4-2015, sources added.
The 8th Schedule extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
Therefore, the said importer took benefits of reduced rate of sales tax at 5 percent, while the chargeable tax rate was 17 percent.
After detection of the contravention, the PCA has forwarded the report to the respective collectorates and the Customs Adjudication for further legal action to make recovery.
