LAHORE: The Customs Post Clarence Audit (PCA) has detected Rs 2.28 million tax evasion by Chempak Imports, Circular Road, Lahore on account of inadmissible exemption of SRO 567 (I) 2006 and SRO 1007 (1)/ 2005.
The Directorate of Post Clearance Audit Lahore observed that certain importers of chemical goods are involved in the evasion of duties by availing irregular exemption of customs duty under S. No 4 of SRO567 (1)/2006 and exemption of sales tax S. NO 5 of table-II of SRO 1007 (I) 2005 during customs clearance of zinc sulphate (33 percent). The commodity is classified under PCT heading 2833, 2940. The PCA observed that the said SROs were meant for poultry ingredients only.
It was observed that Chempak Imports, Lahore imported consignment of the aforesaid impugned goods which were prima facie were fertilizers and as such were not entitled for the exemption of customs duty and sales tax under the said SROs during calendar year 2014.
The PCA said that the mis-declaration resulted in the duty and taxes evasion to the tune of Rs 2.28 million. The company has been asked to deposit the short money. Sources said that Post Clearance Audit authorities already expedited their efforts to generate more revenue from tax evaders. Sources said that PCA is already adopted a comprehensive strategy to recover pending and outstanding amount from companies and individuals to meet the revenue collection target set for current Fiscal Year 2016-17.
Sources said that PCA authorities are optimistic that they will definitely achieve the revenue collection target of FY 2016-17.
