GST

Section 4 – Non-Allowable Input Tax, Bad Debts Relief, Record Keeping and Offences & Penalties

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(< Section 3 – Taxable Supplies, Value of Supply & Time of Supply) NON ALLOWABLE INPUT TAX While is general, input tax is claimable under Standard and Zero-rated supplies, there are certain instances where Input Taxes are blocked, ie. not claimable. They are the followings:- Purchase and/hire of passenger cars Benefits given to family members of employees Club fees (joining or subscription) for recreational/sporting purposes Medical and personal accident insurance Entertaining family members and potential clients This list is not exhaustive. BAD DEBTS RELIEF Bad debt relief is...

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Section 3 – Taxable Supplies, Value of Supply & Time of Supply

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(< Section 2 – How does GST work?) TAXABLE SUPPLIES Supply means to provide, serve or furnish something. This is normally the situation where one person supply something to a receiver in return for a consideration. Taxable supplies therefore covers the following items in general:- Sale of goods Provision of services Business gift exceeding RM500 given to the same person (including employees) in a year The list above is not exhaustive and also exceptions to the rule for business gift. VALUE OF SUPPLY Whenever there is a monetary payment, Value of Supply shall be the full payment less...

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Section 2 – How does GST work?

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(< Section 1 – What is GST?) HOW DOES GST WORK? At a glance, GST comes with a flat rate of 6% on the invoice value. Below is a simple example to show the mechanics of GST in practise:- As you can see, burden of paying the 6% GST is on the Consumer. GST is NOT a cost to businesses, but rather to the Consumers only. However, there are exceptions to the rule. In next part of this article, we will see the different types of supplies that will affect how GST will impact a Taxable Person. TYPES OF SUPPLY There are basically 4 types of supplies scenario, each carrying different impact to...

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Section 1 – What is GST?

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WHAT IS GST? Goods and Service Tax (“GST”) is governed by the Royal Malaysian Customs Department, and it is a replacement of the current Sales Tax and Service Tax. GST is a consumption tax, which means the more you consume, the more GST you need to pay. GST is applicable on goods and services that are imported and/or consumed in Malaysia. The first thing to note is that GST has no relation to the Inland Revenue Board (or LHDN) and definitely has nothing to do with your company taxes. Hence, do not expect or assume that your Accountant or Tax Agent will take care of GST for you. WHO MUST...

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