KARACHI: The Pakistan Customs Directorate of Post Clearance Audit (PCA) has detected evasion of sales tax to the tune of Rs 20.62 million on import of silos classifiable under PCT Heading 9406.0030.
The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the PCA Directorate.
The importer M/s Jadeed Feeds Industries Private Limited had imported silos from the United States of America (USA) with Goods Declaration (GD) No. KPPI-HC-18069 dated October 2, 2015 and GD KPPI-HC-14535 dated September 15, 2014, sources told Customs Today.
The importer availed concession of 8th Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of “Grain Storage Silos with all standard accessories” under PCT Heading 9406.0030.
The 8th Schedule (sales tax) 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 sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to Sales Tax at 17 percent.
After detection of the contravention, the Directorate of PCA has forwarded the report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof.
