Concrete products: RTO Pindi unearths massive ST evasion by two SIE units

Regional Tax Office (RTO) Rawalpindi has unearthed a massive sales tax evasion by two units in Small Industrial Estate engaged in the manufacturing/supplying of pre-fabricated concrete products across the country.
Sources said the credit goes to the experts team of RTO Rawalpindi that detected the cases in Small Industrial Estate, sending a loud and clear message to other industrial units to comply with the tax laws to avoid cases against such fraudulent units. A credible information was received through an informer that Abbas Sikandar owner of M/s Sikandar Builders, GT Road, Small Industrial Estate, Rathian, Jhelum was allegedly involved in the massive evasion of Sales Tax. The said unit is engaged in the manufacturing of pre-fabricated concrete products, ie, Pre Cast Slabs, Pre Stressed Girders, Double Tee and Pre Cast Boundary Walls, etc, and subsequently supply in different areas of the country.
In this regard, tax profile of the unit revealed that the unit is allegedly involved in evasion of sales tax of millions of rupees.
In pursuance of information received necessary scrutiny of income tax and sales tax returns filed by the unit have been made and to gather more information after getting search warrants under section 40 of the Sales Tax Act, 1990 search of the registered office of said unit conducted in which five chequer books of different bank account (along with other documents) has also been retrieved bearing huge credit entries. The owner failed to explain the same. In this regard three meetings were held with him (to ascertain the actual worth of evasion) but in vain. Moreover, he is also reluctant to provide his purchase and sales record.
In the light of evidence on record and the facts narrated above, proprietor of the unit has knowingly, fraudulently and deliberately committed tax fraud in terms of section 2(37), punishable under section 33(11) & 33(13) of the Sales Tax Act, 1990 read with Section 37A and 37B of the Sales Tax Act, 1990.
Hence, the case is being registered against proprietor of Builders, GT Road, Small Industrial Estate, Rathian, Jhelum and others. Investigation of the case is being entrusted to Shujaat Ali Khan, Assistant Director (Audit), on the direction of the superior officers.
On the same pattern, another credible information was received Muhammad Zeeshan Sikandar being owner of M/s Sikandar Precast, GT Road Tarakai More Suhawa is allegedly involved in the massive evasion of sales tax.