FBR unearths fraud of millions in supply of CCTV cameras

ISLAMABAD: The FBR has unearthed alleged sales tax fraud of millions of rupees in supply of security equipments, CCTV cameras and IT related equipment.

According to detailed report, available with The News, the Directorate General Intelligence & Investigation (I&I) Inland Revenues (IR) Lahore received a credible information that M/S Digital Links, based in Lahore in collusion with M/S Digital Links (Pvt) Ltd NTN: 3986079-5 & STRN: 03-00-3968-079-15 was allegedly involved in evasion of huge sales tax by way of suspension of its sales. 

M/S Digital Links, Lahore engaged in making of taxable supplies of CCTV cameras and security related IT equipment without getting Sales Tax Registration. 

The I&I, IR Directorate conducted inquiry and during initial stage, it was found that M/S Digital Links (Pvt) Ltd is non-existent at the declared address i.e Jeff Heights77-E, Gulberg-III, Lahore. The income tax returns for the tax year 2012 to 2015 revealed following declarations regarding supplies of cameras chargeable to sales tax:-

It was further observed that in income tax returns declared its supplies valuing Rs199,313,099 during the tax period from 2013 to 2015.  The supply of such taxable goods i.e. CCTV cameras and security alert equipment are subject to sales tax under section 3 of the Sales Tax Act, 1990. 

M/S Digital Links was liable to be registered since 2013 under Sales Tax Act, 1990 read with Rule 4(a) and 5 of the Sales Tax Registration Rules, 2006. 

However, they deliberately did not register for sales tax but supplied taxable goods without payment of sales tax due thereon.

In view of this position, the Directorate I&I-IR, Lahore has taken action in terms of section 38 of the Sales Tax Act, 1990 read with first proviso to section 25(2) ibid and section 40 of the Sales Tax Act, 1990 read with section 102 & 103 of CRPC 1898 and resumed record including accounts record, sales ledgers, purchase ledgers, private record / documents Cheque books, laptops and CPUs etc. 

Initial scrutiny of the impounded record indicates (12) un-cleared and benami Bank accounts. Prima facie it is understood that the said record / documents will be useful in the case proceedings under the Sales Tax Act, 1990 and will also correlate with supplies which have been made without payment of due sales tax.  Investigations in the matter are under way and progress in this regards will be shared in due course of time.