Directorate General of Intelligence and Investigation Inland Revenue has identified 13 fraudulent units of Karachi, who cleared imports by declaring their status incorrectly as 'manufacturers' to avoid value addition tax at import stage.
Sources told Business Recorder here on Tuesday that the agency has recommended Chief Commissioner IR Regional Tax Office Karachi for initiating proceedings against bogus registered persons availing facilities as manufacturer at import stage. The agency has strongly recommended the RTO to suspend sales tax registration of these 13 registered persons and initiate proceedings for blacklisting them in terms of section 21(2) of the Sales Tax Act, 1990.
According to Director General DG I&I IR Haroon M K Tareen, the Directorate General has received credible information that certain registered persons are involved in evasion of Sales Tax by misusing provisions of SRO 1125(1)/2011 (by claiming status as 'manufacturers' either with or without sufficient facilities of manufacturing). Moreover, reportedly some of those registered persons are also engaged in concealing sales depriving the exchequer of sales tax which is payable on subsequent supply.
The said units have cleared most of their imports by declaring their status incorrectly, as manufacturers, without payment of value addition tax at import stage and thus caused loss to national exchequer. Therefore in order to avoid further loss of revenue, the agency has asked the Chief Commissioner IR Regional Tax Office Karachi to suspend registration of the registered persons listed hereunder and initiate proceedings for blacklisting them in terms of section 21(2) of the Sales Tax Act, 1990. In the 13 cases, total number of containers blocked on the basis of information provided by I&I-IR Karachi is approximately 70 involving millions of rupees in revenue, Haroon Tareen added.
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