KARACHI: Directorate of Post clearance Audit (PCA) Karachi has detected evasion of Rs60million through misuse of concessionary regime and served 20 Audit Observations in various importers advising payment of evaded amount in the national exchequer.
According to details, scrutiny/audit of import data it has been found that a number of importers imported consignments declared to be solar panels LED lights with fittings and fixture and batteries etc and sought clearance and claimed the benefits of Fifth Schedule (Customs Duty) Part 1-24, Sixth Schedule (Sales Tax)-15.2-25/06/20 and Income Tax at zero percent CL77 PT-IV 2nd Schedule ITO-10.
The exemptions are only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies as per notification mentioned above. Whereas, clause 77 part-IV Second Schedule of Income Tax Ordinance, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only. The examination staff in their examination report has not confirmed that the imported LED Lights and Batteries are for solar use. It appears from the examination report that the imported items are for general use as these are operative / works under the normal thermal / hydral power sources normally used in Pakistan.
It is an undeniable proof that the imported goods are not meant for to work / operate with the renewable energy sources like Solar Energy or Wind Energy. Further it transpires that the imported goods operate on alternating current (AC) voltage rather than on direct current (DC) which is used / and operate in the renewable energy technologies. Therefore, the concessions under the claimed notifications are not available to the subject imports.
These importers include M/s Green Globe Pvt Ltd Lahore, M/s Electroline Karachi, M/s Galaxie Lighting Solutions Lahore, M/s Illuminate Lighting Lahore, M/z Nizam Energy Pvt Ltd Karachi, M/s JW Enviro Pakistan Pvt Ltd Lahore, M/s Tayyab Traders Lahore, M/s Electric Lighting Agencies Karachi, M/s Zamir Trading Co. Lahore, M/s Star Communication Karachi, M/s Dee Sons Enterprises Lahore, M/s Usman & Aziz Trading Co. Lahore, M/s Bhutta International Karachi, M/s Num Traders Karachi, M/s ZAH Enterprises Lahore, M/s Penta Gon International Karachi, M/s Kinjhar International Karachi, M/s ASK Technologies Karachi, M/s Orient Electronics Pvt Ltd Lahore and M/s Sharif International Rawalpindi.