KARACHI: The Directorate of Customs Post Clearance Audit has detected evasion of duties and taxes of Rs 7.26 million by M/s Muddassir Alam and Sons, it is learnt.
The official sources told Customs Today that M/s Muddassir Alam and Sons imported a consignment of different machinery parts and used monitor picture tubes from Japan under the PCT Heading 2309.4560 and got it cleared from the PICT Karachi vide GDs on July 9, 2017 by paying customs duty at 10 percent after claiming the benefit of SRO 721/2007.
However, the subject items are correctly classifiable under the PCT 2302.4578 attracting customs duty at 12 percent and income tax at 14 percent thus by way of mis-declaration of classification, M/s Muddassir Alam and Sons evaded/short-paid Rs 7.26 million.
Sources told that the importer has violated the provisions of Section 38 (3) (4) & (8A) of the Customs Act-1969, Section 13, 14 & 16 read with Section 46 of the Sales Tax Act-1990 and Section 154 of Income Tax Ordinance 2001 punishable under clauses (18) and 19 of Section 134(1) of the Customs Act 1969, Section 38(7) of the Sales Tax Act-1990 and Section 154 & 190 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 Muddassir Alam and Sons for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.
