MCC Appraisement West detects misuse of SRO 1125(I)/2011

KARACHI: MCC Appraisement West has detected misuse of benefit of sales tax for import of styrene butadiene rubber under SRO 1125(I)/2011.

Information was received through Collector MCC Appraisement West Shahnaz Maqbol regarding the extension of benefit of zero rated sales tax for the import of styrene butadiene rubber 1502 (SBR) under SRO 1125(I)/2011.

Subsequently, a team was formed supervised by Deputy Collector Imran Rasool and led by Principal Appraiser Shahid Dasti.

Accordingly two consignments declared to contain SBR claiming benefit of under PCT 4002.1900 were detained for detailed scrutiny. Consequently, it has been found that the importers have declared the description as styrene butadiene rubber only and claimed the benefit of sales tax under SRO 1125(I)/2011, which is only extendable to a certain class of styrene butadiene rubber (latex).

In accordance with the subject SRO, the consignments of styrene butadiene rubber having specified properties of grade 1502 and latex are entitled for benefit of sales tax exemption, whereas no other product classifiable under residual heading of others is entitled the benefit of aforesaid SRO. Therefore, a short recovery of sales tax and other taxes is worked out to Rs6.24 million.

The scrutiny of previous imports since 2013 by commercial importers of styrene butadiene rubber availing the benefit was checked which revealed that 53 consignments were imported and cleared through MCC Appraisement West involving short recovery of sales tax and other taxes amounting to Rs61.63 million.

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