SQL Financial Accounting Software

For quotation or queries can to WhatsApp to 01128241483

SQL Financial Accounting Software is so simple to be use and searchable by Voucher No or Date or Description or Cheque No or Amount. The best things are you no need to headache on the GST-03 calculations as it will generate for you just a few simple clicks. Can add 4 more companies under one license with the same address on the main Company register.

Here I wish to share some solutions on the SQL transactions.

To set BL tax code in suppliers for

• service and maintenance on Motor Vehicle 
• more details at GST-Blocked Input Tax (BL)

as the expenses are block input tax that that cannot be claim under the GST-03 submission.

Go to Supplier---Maintain Supplier---New---Tax---under the GST No:---BL-Purchases with GST incurred but not claimable.

By setting this BL tax code can minimised the wrong doing by ourself or junior accounts staff that accidentally put it under TX and claim under GST-03 when it due.

Official Receipts beside receipts from customers
Go to Cash Book Entry---New beside got an arrow press it and you will see Payment Voucher and Official Receipt.

Gift / Deemed Supply entries
Go to GST---Gift / Deemed Supply---New

As you need to create a new code (if new customer) in the Maintain Customer for the person you wish to give out the Gift / Deemed Supply because as per Gift Rules, gift or goods and services valued more than RM 500/year are subjected to GST-payable, so by input the Supplier code the system will monitor for you on the Gift Rule.

Cancelled Payment Voucher (PV) / Official Receipt (OR) due to cheque returns
Go back to which PV / OR entry you which to cancel---Edit---and tick at right corner got the cancelled box---and save the entry, so by doing this you no worry on last time entries what to DR or CR.
To double confirm, you can see the entry is in RED colour means being CANCELLED
Whereas normal entry is in BLACK colour.

Inter Company Transactions ( Group Registration)
For internal transactions (sales / purchases) that got Group Registration can put the tax code to GP for purchases and GS for sales between the related parties that register under Group Registration that is 0% GST

Upload Company Logo
Go to File---Company Profile---right click on the Logo box---Load---where the logo you keep it, but it better you save it to eStream---SQLAccounting---Share.

Issuing Tax Invoices
Go to Sales---Invoice---New
But before you can start, you need to set the Item code and Stock Group at Stock there.
After set the item code, if the Description not enough space, you can add More Description at the box beside Item code at the left hand side (as it will show Click here to show / hide / move columns) and tick the More Description.
For your information, if you issued invoice from Customer---Invoice, that format is for normal invoice before GST as it just got Invoice only not Tax Invoice. So your customer will request to issued Tax Invoice for them to claim back the GST they paid.

Run GST-03
Go to GST---New GST Return---Choose the date if you submit monthly so first submission is 01/04/2015 to 30/04/2015. And Press Process.
If after checking there were some mistake or Tax Invoices not yet take up into accounts and wish to add into April 2015 submission, then how?
Go to GST---Open GST Return---Right click on the GST Return - 01 April 2015 to 30 April 2015 and choose Delete. But advise not to use it frequently.
So make sure all Tax Invoices April 2015 already taken up and only Run the GST Return. As after you run it, all Tax Invoices in April 2015 cannot be input to April 2015 period anymore.

Submit GST-03 online at TAP
Go to GST---Open GST Return---Press the GST-03 button---3rd button (Comman)---GST03_TAP and export the file to your desire place.
Make sure your SQL Financial Accounting Version is up to date to Version 4.2015.746.711 or you can download it at www.sql.com.my
Then open TAP and login with email address and password
After sign in Go to MY ACCOUNTS and click on your Account id (12 digits no) then you will see the Period 30-April-2015 and 31-May-2015, So press the 30-April-2015 on File Now and will see the Import words on your right hand corner there.
Happy submission.

Thanks for sharing.

CIDB-Online Registration

CIDB online registration at below:
http://smb.cidb.gov.my/

Check your staff green card here:
http://smb.cidb.gov.my/personnel/application

Important documents for submission:

• Payment slip of RM 50.00
• Authorised Letter (if not submitted by director-sample from CIDB as below)
• Current date SSM e-info to prove your company status (if need my services can WhatsApp to 01128241483 with charges)
• All directors I/C and Green Card 
• Workers I/C and Green Card (if under technical staff) 
• Make sure the Directors or Workers registered as Kumpulan A or Kumpulan B did not registered under CIDB before in other Company as CIDB will rejected your application if do. So this will help out on the new CIDB application.
• Degree and Diploma Certificate
• EPF Contribution (Borang A) and receipt of payment to prove the workers were working with the company.
• Letter Acceptance

Requirements for Grade Status

1. G7 with no tender limit, paid up capital RM 750,000.00, 1 person from Group A and 1 person from Group B (with min 5 years of experience each) or  2 person from Group A ( 1 person with min 5 years experience)
2. G6 with tender limit less than RM 10 mil, paid up capital RM 500,000.00, 1 person from Group A and 1 person from Group B (with min 3 years of experience either one) 
3. G5 with tender limit less than RM 5 mil, paid up capital RM 250,000.00, 1 person from Group B (with min 5 years of experience) or 1 person from Group A
4. G4 with tender limit less than RM 3 mil, paid up capital RM 150,000.00, 1 person from Group B 
5. G3 with tender limit less than RM 1 mil, paid up capital RM 50,000.00, Certificate course / Technical / Accounting experience
6. G2 with tender limit less than RM 0.5 mil, paid up capital RM 25,000.00, Certificate course / Technical / Accounting experience
7. G1 with tender limit less than RM 0.25 mil, paid up capital RM 5,000.00, Certificate course / Technical / Accounting experience

Group A is Degree Holders in Contruction

Group B is Diploma Holders in Construction

Example Authoried Letter from CIDB
Can be download from www.cidb.gov.my--> Products and Publication---> Registration Requirement and Procedure at Page 90, if director is free to collect the Certificate better go by director with IC and letter from CIDB to inform the Cert was ready for collection will do.

GST-Construction Industry

GST treatment in Construction Industry

Contractors

• All types of construction services is subjected to GST, regardless of whether the services are for exempt properties such as residential or non-residential properties or for agricultural properties
• Example of construction services as site preparation, foundation work, scaffolding, brick laying, roofing, renovation and repair, carpentry, electrical works, paintings, plumbing, heating,etc
• Input Tax claimable because all input in the construction sector can be attributable to making taxable supply
• Value of contract includes the value of all works and materials permanently incorporated in or affixed on the site of the building or construction project

Example:

• KL Holding (Property Developer)-GST registrant, develop a piece of land into commercial project
• PJ Sdn Bhd (Main Con)-GST registrant, engaged as Main Contractor, engaged Serdang and Dengkil as sub-contractor, bill KL Holding progressively, charge GST to KL Holding
• Serdang Sdn Bhd (Sub Con)-GST registrant, bill PJ progressively, engaged as Sub Contractor for foundation work, charge GST to PJ
• Dengkil Sdn Bhd (Sub Con)-GST registrant, engaged as Sub Contractor for site preparation, bill PJ progressively, charge GST to PJ

Time of Supply

When Certificate of work done NOT required GST must be accounted on the earlier of the following:

• date of tax invoice or
• date of payment (wholly in money) received

When Certificate of work done required GST must accounted on the earlier of the following:

• when payment is received
• when tax invoice is issued
• when certificate of work done is issued (provided that no tax invoice issued within 21 days after certificate is issued)

Otherwise, the time of supply is date of tax invoice issued.

Example:

• Progress payment subject to GST
• Retention payment subject to GST (when released)
• LAD NOT subject to GST
• Rectification defect NOT subject to GST (compensation)
• Tender deposit - payment in future subject to GST
• Tender deposit - as security NOT subject to GST
• Commission subject to GST 

Property Developer

• Land is supply of goods or services (Schedule 1, Clause 20)
• Supply of goods involves transfer of (Schedule 1, Clause 2(1a-e))

1. the whole right of ownership in land
2. land under agreement for the sale of such land
3. land under an agreement which expressly stipulates that the ownership of such land will pass at some time in the future
4. any interest under Deed of Assignment or any strata title

• Supply of services (Schedule 1, Clause 2(2))

1. lease, tenancy, easement
2. license to occupy land
3. transfer of undivided share in land

• Where there is a default in payment under security relating to land, the transfer of such land shall be treated as a supply of goods (Schedule 1, Clause 2(3))
• Supply of land for agricultural, residential and general purpose - EXEMPT SUPPLY
• General purpose means burial, playground and religious purpose.

Exempt Supply-Property Developer

Sale and lease on:

• Land and building for residential purpose

1. vacant land zone or approved for "Residential" and used or to be used for residential purpose (land title)
2. any land or part thereof with any building, flat or tenement thereon, being a building, flat or tenement which is used or to be used principally for residential purpose (strata title)

• Land for agricultural purpose
• Land for general use such as for burial purpose,etc

Land and building for commercial and industrial purposes are Standard Rated (SR)

Examples of building for commercial and industrial purpose are:

• shop lots, office, retail, SoHo, SoVo, SoFo, factories, motel, inn, hostel, hotel,etc

The classification of land and building is based on USAGE

The actual use of the property, design features and the essential characteristic and attributes of the property.

In the case of newly completed property which has not been used, the sale of the property will be based on the design features and the essential characteristic and attributes of the property.

Vacant / bare land to be treated based on usage according to the title

Land-goods or service

Change in use eg. residential house converted to commercial premise-subject to the following:-

• The premise registered with the relevant authorities
• The owner apply for change of use
• Evidenced by the sales and purchase agreement

Time of Supply-Property Developer

• at the time of tax invoice is issued
• at the time of payment received
• whichever is the earlier

Sale of uncompleted non-residential property under progress payment by developers

• account for GST at the various stages of the progress / scheduled payment based on the earlier

1. a tax invoice has been issued or
2. payment is received

When should GST be accounted on the sale of a completed non residential property

• Stage 1-At the stage of signing S&P-GST should be accounted at the earlier of the following:-

1. when a tax invoice is issued or
2. when payment is received

• Stage 2-At the stage of transfer-GST should be accounted at the following:-

1. when tax invoice is issued or
2. when the balance of payment is received or
3. when the property is made available to the purchaser (when the transfer is effected-Borang 14A Pindahmilik Tanah Bahagian atau Pajakan)

The transfer or surrender of land under title to the Government or Local Authorities or any other person

• for no consideration or for a nominal value
• for the purpose of providing public amenities in compliance with the requirements imposed by the Government or the Local Authorities
• Developer need NOT account for GST for such supplies but can claim input 

Promotional Packages offer by Developer to Purchaser

1. Principal goods supplied for residential property with basic fittings as stated in Schedule G or H of Housing Development Act 1966 is EXEMPT. (Developer cannot claim input tax on such supplies)
2. Extra furnished by developer such as built in furniture, curtain, air-conditioner, refrigerator,etc is subject to GST at standard rated (SR). (Developer need to account tax on goods)
3. Car park attached to residential property (eg. apartments and condo), own by parcel owner and stated in SPA.
4. Additional car park-EXEMPT SUPPLY
5. Infrastructure like road, water / oxidation pond, etc will be handed over to local authority are subjected to GST but will be given relief from charging GST
6. Input Tax is recoverable

GST-Malaysia

Goods and Services Tax (GST) is to replace Sales Tax and Service Tax (SST)

GST is charged on goods and services that are

• supply in Malaysia
• made by a taxable person (must registered with Custom)
• in the course or furtherance of business
• imported into Malaysia

Some briefing on SST

• Sales Tax implemented in 1972 for selected goods imported or manufactured locally with threshold of RM 100,000 with rate 5%, 10% and specific. Sales Tax is collected at the manufacturer level.
• Service Tax implemented in 1975 for prescribed services with threshold of RM 0-3 million with rate 6% and specific. Service Tax is collected by the service provider.

Goods subjected to 5% Sales Tax were:

1. Boh 3 in 1
2. Nescafe 3 in 1
3. Ramly Burger
4. Ajino-Moto
5. Corn Fakes, etc

Goods subjected to 10% Sales Tax were:

1. Television
2. Plates
3. Clothes
4. Shoes
5. Furnitures, etc

Services subjected to 6% Service Tax were:

1. Fast Food Restaurant-A & W, McDonald, KFC,etc
2.  Hotel
3. Security Services
4. Professional Services
5. Insurance, etc

Weakness on SST

• Tax on Tax (cascading, double taxation, compounding effect)
• Transfer Pricing
• Tax embedded in goods exported

Benefits on GST

• More efficiency & effectiveness
• Self policing
• Less bureaucracy
• Enhance tax compliance

Government Revenue from SST (10%)

• Manufacturer cost RM 100 + 10% (SST) is RM 10 n sell to Wholesaler
• Wholesaler cost RM 110 + 20% profit margin is RM 22 n sell to Retailer
• Retailer cost RM 132 + 30% profit margin is RM 39.60 n sell to Consumer
• Consumer paid RM 171.60

Government collected RM 10 and loss uncollected tax on the profit margin impost by Wholesaler (RM 10 x 20%-RM 2) and Retailer (RM 12 x 30%-RM 3.60)

Government Revenue from GST (6%)

• Manufacturer cost RM 100 + 6% (GST) is RM 6 n sell to Wholesaler
• Wholesaler cost RM 100 + 20% profit margin (RM 20) + 6% GST (RM 7.20) is RM 27.20 n sell to Retailer
• Retailer cost RM 120 + 30% profit margin (RM 36) + 6% GST (RM 9.36) is RM 45.36 n sell to Consumer
• Consumer paid RM 165.36

Government collected RM 6 + RM 1.20 (RM 7.20-RM 6) + RM 2.16 (RM 9.36-RM 7.20) and no uncollected tax on the profit margin impost by Wholesaler (20%) and Retailer (30%)

Basic principles of GST

• A cunsumption tax in the form of value added tax for each stage of business transaction up to the retail stage of distribution
• Also known as Value Added Tax (VAT)
• GST incurred on inputs is allowed as a credit to the registrant to be offset against output tax

Input Tax on Raw materials, rents, electricity, furniture, professional services,etc 

Output Tax on Sales on Goods & Services charged by business

Therefore business can claimed the Input Tax to be offset on Output Tax 

Net GST paid to custom when due = Output Tax - Input Tax

Example:

Company A purchase RM 5,000.00 with 6% GST = RM 300 (Input Tax)

Company A sale to B at RM 8,000 with 6% GST = RM 480 (Output Tax)

GST Payable (net GST) = RM 480 - RM 300

                                     = RM 180

There are 3 types of supply in GST

1. Standard rated (SR) - 6% - Input Tax - claimable by Manufacturer, Wholesaler and Retailer but Consumer need to pay 6% GST
2. Zero rated (ZP) - 0% - Input Tax - claimable by Manufacturer, Wholesaler and Retailer and Consumer no need to pay 6% GST
3. Exempt (EP) - 0% - Input Tax - claimable by Medical Manufacturer, Wholesaler and Supplier, but Private Hospital cannot claim and charge GST and Consumer no need to pay 6% GST

GST-Special Schemes

1. Approved Trader Scheme (ATS)-facility given to major exporters where GST on imports is suspended
2. Approved Toll Manufacturer Scheme (ATMS)-facility given to local toll manufacturer to disregard tax on value added charges to oversea client
3. Approved Jewelers Scheme (AJS)-GST suspended on gold and precious metal acquired by jewelery manufacturers 
4. Flat Rate Scheme (2%)-to allow farmers to collect additional charges at specific rate from the buyers
5. Margin Scheme-second hand car dealers to account GST on the margin
6. Warehouse Scheme-GST suspended in public and private warehouse
7. Tourist Refund Scheme-tourist allowed to claim GST paid on purchases
8. Designated Are-no GST in Labuan, Langkawi & Tioman

General meaning of Supply

Supply goods means to furnish, serve or provide something in the case of goods on the transfer of title or ownership, outright cash or credit sale, hire purchase, etc

Supply services means the provision of services

Transaction is a supply if

• someone does something or agrees to do something in return for a consideration 
• involves a supplier and a receiver
• anything done for consideration-sale, barter, exchange, license, rental, lease, right to use, gifts or disposition, linked to the supply, everything received in return for the supply of goods or services (in monetary or non-monetary terms)

Supplies not subject to GST

• cash donation or grants where a person does not get benefits
• compensation or liquidated damages
• disbursements, dividends, loan repayments or capital injection
• transfer of business as a going concern
• contribution to pension, provident or social security fund

Supplies subject to GST

• taxable supplied (sales of goods / services)
• deemed supplied for example

1. disposal of business assets
2. private use of business assets
3. payment not paid to taxable person for purchase made after 6 months
4. gifts costing more than RM 500
5. goods sold in satisfaction of a debts
6. imported services
7. supply of service with no consideration to connected person

Consideration

Consideration (Section 2 GST Act 2014) any payment made or to be made, whether in money or otherwise, or any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the person or by any other person: Provided that a deposit, whether refundable or not, given in respect of the supply of goods and services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply. 

Time of Supply

General time of supply rules for

1. Supply of goods is the time when goods are removed means sending the goods to the customers or customers collects the goods from the supplier or when the goods are made available ie if the supplier is assembling something on the customer's premises.
2. Supply of services is the time when the services are performed.
3. Time of Supply when the payment is received or tax invoice is issued to the extent covered by the invoice or payment, whichever is earlier.
4. 21 days rule if tax invoice is issued within 21 days after the basic tax point, then the time of supplu is the time of the tax invoice.
5. Power of the Director General may alter the time at which supplies are made.

Notes: It is an offence under GST Act 2014 if tax invoice is not issued within 21 days after the supply has taken place.

Time of supply is the date of tax invoice if it is issued within 21 days after the 'basic time of supply'

                         x-Tax invoice issued within 21 days-x

      1 July        4 July                                           24 July                                     1 Aug

-----x---------TOS-----------------------Tax Invoice issued---------------------x-----------

                Goods removed or

                Services performed

So Actual Time of Supply on 24.07.14

What happened if invoice issued or payment received before the 'basic time of supply' ? The time of supply is......

• at the time of tax invoice issued
• at the time of payment with regards to supply
• whichever above is the earlier

        1 June    14 June                 24 June         1 July                   10 July                    1 Aug

--------x---------x------------------x-----------x-----------------TOS---------------x------

                    Tax invoice            Time of                                 Goods removed or

                        issued                payment                                 Services performed

So Actual Time of Supply on 14.06.14

                   x-----------within 21 days------------------------x
               30 May                     3 Jun                                    6 Jun
------------x--------------------x-----------------------------x------------

      Goods removed          Payment received                  Tax Invoice issued
      (basic tax point)
So Actual Time of Supply on 06.06.14 even though payment is received before the date of tax invoice

                     x----more than 21 days--x
                 30 May                           26 Jun                            29 Jun
--------------x-------------------------x-------------------------x-------------
       Goods removed                     Tax invoice                       Payment received
       (basic tax point)                         issued  

So Actual Time of Supply on 30.05.14 follow basic tax point

Consignment Sales

Consignor--------------->Consignee------------------>Customer
                 not a supply
Basic Time of Supply when Consignor received the statement of sale from Consignee (date of statement)
Actual Time of Supply when date of Tax invoice issued by Consignor to Consignee.
Consignor has to account for GST

• when it become certain that a supply has taken place (the time when the Consignor receives a statement of sales from the Consignee that the goods had been sold) ,or
• 12 months after the removal of the goods,
• whichever above is the earlier  

If the tax invoice was issued within 21 days of the date of the Consignor receives the statement of sales or after 12 months the goods were sent, then the time of supply is the date of the tax invoice.

Value of Supply(VOS)

Value of Supply (consideration in money)
VOS = Consideration - GST portion
Example: Company A received payment for printer from Company B RM 2,600.00, GST rate is 6%
GST = Consideration x Tax Fraction
GST = RM 2,600 x 6/106
        = RM 147.17
VOS = RM 2,600 - RM 147.17
         = RM 2,452.83

Value of Supply (consideration not in money term)
VOS = Open Market Value (OMV) of the consideration
OMV refer to the Third Schedule of GST Act 2014

Example 1: 

Ali who is a mechanic buys a second hand table from Babu. Ali does not pay in money but agrees to repair Babu's car. If Babu is registered person, he has to account GST for the disposal of second hand table with the value calculated using the open market value of Ali's repair service. OMV service is RM 100.

GST = OMV x Tax Fraction
GST = RM 100 x 6/106
        = RM 5.66
VOS = RM 100 - RM 5.66
         = RM 94.34
Babu accounts DR Other Creditor-Ali              100.00
                       CR     Disposal-Table                           94.34
                       CR     GST-Payable                                5.66

                       DR Upkeep MV                     100.00
                       CR     Other Creditor-Ali                    100.00

Example 2:

Ali buys an old forklift from Cincau. He pays RM 3,000 in cash and agrees to repair Cincau's car as full settlement. If Cincau is a registered person, he has to account for the disposal of the forklift on the value of RM 3,000 cash and the open market value of Ali's repair service. OMV service is RM 2,000.
GST = OMV x Tax Fraction
GST = RM 3,000 x 6/106 + RM 2,000 x 6/106
        = RM 169.81 + RM 113.21
        = RM 283.02
VOS = RM 3,000 + RM 2,000 - RM 283.02
         = RM 4,716.98
Cincau accounts DR Other Creditor-Ali       5,000.00
                          CR     Disposal-Forklift                    4,716.98
                          CR     GST-Payable                            283.02

                          DR Upkeep MV              2,000.00
                          CR     Other Creditor-Ali                2,000.00

                         DR Cash In Hand              3,000.00
                         CR      Other Creditor-Ali                3,000.00

Value of imported goods (VOI)
VOI = Value for customs duty + any customs duty paid + any excise duty paid
Example: Ahmad imported fabric from Japan for a customers value of RM 4,000. The rate for import duty is 30%. The value on which GST is chargeable is as follow:-
VOI = RM 4,000 + (RM 4,000 x 30%)
        = RM 4,000 + RM 1,200
        = RM 5,200
GST = RM 5,200 x 6%
        = RM 312

Repeal of Sales Tax and Service Tax

From the Appointed Date (AD) implementation of GST on 01.04.2015 still enforced on matters where tax is due and payable and liability (offences) incurred:

• Collection
• Remission
• Recovery
• Refund
• Drawback
• Penalty

Final return for sales tax

• Final return must be submitted not later than 28 days from the date the GST Act comes into force (GST implementation date ie 01.04.2015)
• All tax liabilities must be accounted in the final return

Final return for service tax

• Return can be submitted in accordance with the Service Tax Act (payment basic). The licensee maybe have to submit two returns:

1. GST Return
2. Special form for service tax until the expiry of 12 months from the GST implementation date

Supplies Spanning GST

Meaning of supply spanning GST is payment or invoice before Appointment Date (AD) and supply take place on and after AD e.g. sales of goods, airline tickets and cinema tickets

General Rule

• any supply before AD not subject to GST
• any supply on or after AD subject to GST

Exception to the general rule

• supply of warranty
• provision of services where service tax has been charged
• provision of goods where sales tax has been charged
• non review-able contracts

Scenario 1:
               15 Mar                                      1 Apr                                        15 Apr
------------x--------------------------------x--------------------------------x-----------

Invoice issued &                             Deemed: Invoice issued &               Goods supplied/
Payment received                            Payment received on AD                 Service performed

Value of supply
(GST inclusive)

Scenario 2:
Licensees under Sales Tax &                                                              Licensees is taxable person
Service Tax Act                                                                                  under GST Tax Axt
                 15 Mar                                         1 Apr                                          15 Apr
-------------x----------------------------------x---------------------------------x------
Invoice issued &                          No tax chargeable on the supply           Goods supplied/
Payment received                        of goods or services made on or            Service performed
                                                   after AD

Example 1: Genting Resort if the invoice for renting a hall is issued before GST implementation date, prior to an event which would only take place after AD. The services will not subjected to GST but subject to service tax.

Example 2: Sunway Lagoon tickets sold before GST implementation but services perform after AD eg. admission tickets to theme park subject to GST. Amount paid to be GST inclusive eg. Ticket price at RM 100 x GST @ 6% to show as RM 106.00 (not separated)

Example 3: Air Asia flight ticket sold before GST implementation but services rendered after AD subject to GSt. Amount to be GST inclusive eg. Ticket price RM 300 x GST @ 6% to show as RM 318.00 (not separated)

What is progressive or periodic supply?

Part of supply before AD and part of supply on and after AD, supply is continuous and uniform eg. electricity and commercial rental, telephone rental

General Rule

• Any supply before AD is not subject to GST
• Any supply on and after AD is subject to GST
• Work out GST on proportional time basis

Example: Supply of electricity

           21/03/2015                         AD-01/04/2015                                 20/04/2015

-----------x-------------------------------x------Subject to GST-------------x--------------

                                                                 x-------------20 days--------------x

                                                                           

TNB bill 21/03/2015 to 20/04/2015 is RM 300

Taxable Value = RM 300/30 x 20 days

                      = RM 200

GST 6%        = RM 12

Non reviewable contract

• written contract with no provision to review consideration for the supply until a review opportunity arises and
• 24 months before the date of GST implementation (01.04.2015)
• Zero rate supply for 5 years after AD or when a review opportunity arises whichever is the earlier

1. both supplier and recipient are registered person
2. supply is a taxable supply and
3. the recipient of the supply is entitled to claim input tax on that supply

• After 5 years period, revert to either standard rate or zero rate (01.04.2020)

Entitle to special refund of Sales tax (100%) if:

• claimant is registered (mandatory) person 
• hold goods on AD for making taxable supply
• goods are subject to Sales Tax
• hold relevant invoices or import document to show Sales Tax has been paid

Goods not eligible for Special refund:

• capital goods eg. building and land
• goods used partially or incorporated into other goods eg. raw materials, work in progress
• goods for hire eg. cars, generators
• goods not for business eg. personal use
• goods not for sale or exchange eg. containers, pellets, stationery, moulds, manufacturing aids 
• goods entitled to drawback
• goods allowed sales tax deduction under Section 31A Sales Tax Act 1972 (credit system)

Manner to claim special refund:

• claim within 6 months from AD
• for special refund less than RM 10,000 require audit certificate signed by a chartered accountant
• for special refund same or more than RM 10,000 require audit certificate signed by an approved company auditor
• use special form to claim refund (online only)
• to be given eight (8) equal installments over a period of two (2) years
• to account as output tax is special refund is claimed and goods are returned

Reduce special refund to 20% if

• purchase goods from non licensed manufacturers
• goods are subjected to sales tax
• holds invoices which does not show sales tax has been charged
• claimant is a registered (mandatory) person
• hold goods on AD for making taxable goods

Special refund = Actual price x 20% x sales tax rate

Example: Purchased RM 15,000 of raw materials but holds RM 10,000 on AD

Special refund = RM 10,000 x 20% x 10%

                      = RM 200

Mapping Transactions

Finance, Administration and Legal:

• Cash flow impact and cash optimisation
• Compliance cost and budgeting
• Review legal contracts and documents
• Maximise claim for input tax
• Claim special refund
• Monitor bad debts
• Get the correct appropriate registration
• Apply for special schemes
• Cancel sales tax and service tax licence

Marketing and Sales:

• Effect on prices
• Tax Invoice
• Credit term
• Review costing
• Pass down the savings

Purchasing:

• Supplier selection
• Document for input tax claim

IT:

• Accounting system

Corporate Strategy:

• Optimise business model
• Optimise corporate structure

Staff

• Staff training
• GST Project team

Explanation to the tax code

• Tax code : TX for goods and or services purchased from GST registered suppliers. The prevailing GST rate at 6% wef 01.04.2015. As it is a tax on the final consumption, a GST registered trader will be able to claim credits for GST paid on goods or services supplied to them. The recoverable credits are called input tax Example include goods or services purchased for business purpose from GST registered traders.
• 
  
• Tax code : IM for goods imported into Malaysia are subjected to duties and or GST. GST is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any) unless the imported goods are for storage in a licensed warehouse or Free Trade Zone, or imported under Warehouse Scheme, or under the Approval Trade Scheme. If you are a GST registered trade and have paid GST to Malaysia Customs on your import, you can claim input tax deduction in your GST returns submitted to the Director General of Customs.
• 
  
• Tax code : IS for goods imported under the Approved Trader Scheme (ATS) and Approval Toll Manufacturer Scheme (ATMS) where GST is suspended when the trader imports the non-duties goods into Malaysia. This two schemes are designed to ease the cash flow of Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS) who has significant imports.
• 
  
• Tax code : BL for GST incurred by a business but GST registered trader is not allowed to claim input tax incurred. The expenses are as following:

1. The supply to or importation of a passenger car
2. The hiring of passenger car
3. Club subscription fee (including transfer fee) charged by the sporting and recreational club
4. Medical and personal accident insurance premiums by your staff
5. Medical expenses incurred by your staff. Excluding those covered under the provision of the employee's Social Security Act 1969, Workmen's Compensation Act 1952 or under any collective agreement under the Industrial Relations Act 1967
6. Benefits provided to the family members or relatives of your staff
7. Entertainment expenses to a person other than employee and existing customers except entertainment incurred by the person who is in the business of providing entertainment.

• Tax code : NR for goods and services purchased from non-GST registered supplier / trader. A supplier / trader who is not registered for GST is not allowed to charged and collect GST. Under the GST model, any unauthorized collection of GST is an offence.
• 
  
• Tax code : ZP for goods and services purchased from GST registered suppliers where GST is charged at 0%. This is also commonly known as Zero-rated purchases. The list as in the Appendix A1 to Budget 2014 Speech.
• 
  
• Tax code : EP for purchases in relation to residential properties or certain financial services where there no GST was charged (i.e. exempt from GST). Consequently, there is no input tax would be incurred on these supplies. Examples as in Appendix A2 Budget 2014 Speech.
• 
  
• Tax code : OP for purchases of goods outside the scope of GST. An example is purchase of goods oversea and the goods did not come into Malaysia, the purchase of the business transferred as a going concern. For purchase of goods overseas, there may be instances where tax is imposed by a foreign jurisdiction that is similar to GST (eg. VAT). Nonetheless, the GST registered trader is not allowed to claim input tax for GST / VAT incurred for such purchases. This is because the input tax is paid to a party outside Malaysia.
• 
  
• Tax code : TX-E43 applicable to GST registered trader (Group and ATS only) that makes both taxable and exempt supplies (or commonly known as partially exempt supply). TX-E43 should be used for transactions involving the payment of input tax that is directly attributable to the making Incidental Exempt Supplies. Incidental Exempt Supplies include interest income from deposits placed with a financial institution in Malaysia, realized foreign exchange gains or losses, first issue bonds, first issue of shares through an Initial Public Offering and Interest received from loans provided to employees, factoring receivables, money received from unit holders for units received by a unit trust etc.
• 
  
• Tax code : TX-N43 applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). TX-N43 should be used for transactions involving the payment of input tax that is directly attributable to the making Non-Incidental Exempt Supplies. Example for this tax code are your company bought wall paper for your residential apartment rented to others and purchase costs are already included 6% GST, but you are not eligible to claim the amount of input tax as it would be applied directly to make exempt supply (rental of resident apartment).
• 
  
• Tax code : TX-RE applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). This refers to GST incurred that is not directly attributable to making of taxable or exempt supplies (or commonly known as residual input tax). Example includes operation over-head for a development of mixed property (properties comprise of residential & commercial).
• 
  
• Tax code : GP for purchase within GST Group Registration, purchase made within a Warehouse Scheme etc.
• 
  
• Tax code : AJP for any adjustment made to Input tax such as bad debts relief & other input tax adjustments.
• 
  
• Tax code : SR for a GST registered supplier must charge and account GST at 6% for all sales of goods and services made in Malaysia unless the supply qualifyes for zero-rating, exemption or falls outside the scope of the proposed GST model. The GST collected from customer is called output tax. The value of sale and corresponding output tax must be reported in the GST returns.
• 
  
• Tax code : ZRL for a GST registered supplier can zero-rate (ie. charging GST at 0%) certain local supply of goods and services if such goods and services are included in the Goods and Services Tax (Zero Rate Supplies) Order 201X. Examples includes sales of fish, cooking oil,etc.
• Tax code : ZRE for a GST registered supplier can zero-rate (ie. charging GST at 0%) the supply of goods and services if they export the goods out of Malaysia or the services fall within the description of international services. Examples includes sale of air-tickets and international freight charges.
• 
  
• Tax code : ES43 applicable to GST registered trader that makes both taxable and exempt supplies ( or commonly known as partially exempt trader). This refers to exempt supplies made under incidental exempt supplies. Incidental Exempt Supplies include interest income from deposits placed with a financial institution in Malaysia, realized foreign exchange gains or losses, first issue of bonds, first issued of shares through an Initial Public Offering and interest received from loans provided to employees also include factoring receivable, money received from unit holders for units received by unit trust,etc.
• 
  
• Tax code : DS for GST is chargeable on supplies of goods and services. For GST to be applicable there must be goods or services provided and a consideration paid in return. However, there are situations where a supply has taken place even though no goods or services are provided or no consideration is paid. These are known as deemed supplies. Examples include free gifts (more than RM 500) and disposal of business assets without consideration.
• 
  
• Tax code : OS for supplies (commonly known as out-of-scope supply) which are outside the scope and GST is therefore not chargeable. In general, they are transfer of business as a going concern, private transactions, third country sales (ie sales of goods from a place outside Malaysia to another place outside Malaysia).
• 
  
• Tax code : ES for supplies which are exempt under GST. These supply include residential property, public transportation etc.
• 
  
• Tax code : RS for supplies which are supply given relief from GST.
• 
  
• Tax code : GS for supplies which are disregarded under GST. These aupplies include supply within GST Group Registration, sales made within Warehouse Scheme etc.
• 
  
• Tax code : AJS for any adjustment made to Output Tax. Example such as longer period adjustment, bad debts recovered, outstanding invoices more than 6 months & other output tax adjustments.

For advise on who's company got letter from Kastam Kelana Jaya, you just need to photocopy all your supporting documents and courier to Pusat Pemprosesan GST, Kompleks Kastam Kelana Jaya, No 22, Jalan SS6/3, Kelana Jaya, 47301 Petaling Jaya, Selangor will do and no need to go there personally as the results will be the same no people will attending you there, but this just my experience only maybe you be more lucky than me that can solve it as you wish.

As my experience, just wish to confirm where can I get back my GST-03 refunds on Input Tax Refunds, from 1st Floor they ask me go to 4th Floor, 4th Floor ask to go to 2nd Floor, 2nd Floor ask to go back 1st Floor, so sometime they instruct people so not professional on Kastam Kelana Jaya, I just want to submit documents for supporting my Input Tax claims only also need to make me walk here and there only and also no officer will attend you and just have to drop the supporting documents in the drop box only outside the office, as I reach there, still got few people waiting outside the office but the officer inside look us like transparent only and won't come out to ask us what we want and help us out. 

And got answer from Kastam staff said calls to Kastam Kelana Jaya will be no people answering the calls and no people will see you on the Pusat Pemprosesan GST other than last week of the month only open for payment and see people only, what the service Kastam is providing, said Output Tax is Kastam revenue, but when we wish to claim back Input Tax refunds is Kastam Expenses so they will delay here and there, as they promise within 14 days if we submitted online get back our refunds, but look like that 28 days we also cannot get back our refunds. 

Checking status

Still owing Perbadanan Tabung Pendidikan Tinggi Nasianal (PTPTN) can check your status here:
epay.ptptn.gov.my/penyata/index.html

Check your saving in SSPN-i can check it here:
www.ptptn.gov.my/web/guest/simpanan/semak-akaun

Still owing Income Tax (LHDN) can check your status bar from Imigration here:
sspi2.imi.gov.my

check your motor vehicle expiring date here:
www.jpj.gov.my/web/eng/checking-for-expiry-date-motor-vehicle-licence

check your driving licence expiring date here:
www.jpj.gov.my/web/eng/checking-for-expiry-date-of-driving-lincense

check your summons with JPJ here:
www.jpj.gov.my/web/eng/checking-summons

check your PDRM summons with MYEG here:
https://www.myeg.com.my/

If you wish to check/clear your status can send in CHECK PDRM I/C or Company No or DELETE PDRM I/C or Company No to 01112885539, thanks.

Friendly reminder on the listing for summons under PDRM:

1. Kenwingston-907815-P-36 summons for WXD3180, WWQ3108, BLV8443, WA8031A,etc
2. E-Rack-874809-U-1 summon for BLS6802
3. Mobiweb-760405-K-1 summon for WYR965
4. Lim Eng Leong-660126045161-2 summons for MBA697, ML5471
5. Chan Chee Seng-000840028-U-8 summons for BEK9565, WDM229
6. Alfa Hidraulik-866697-P-24 summons for KCP3888, WYC2999, WA333R, etc
7. Great Carrier-710708-P-8 summons for PDA5684, KAE6679, BHS2019, etc
8. Leon Fuat-082300-H-2 summons for WMJ377, BNH8888
9. M.S.Auto-281555-M-5 summons for BKR1308, WJG3136, WHY1469, etc
10. Maquip-160431-H-6 summons for WJE1944, WC5071Q, ACB6275, etc
11. PHH Special-623873-D-21 summons for WTY6193, WUB6193, WYV6193, etc
12. Top Slings-472538-H-13 summons for BML7826, BLG7826, BKK8853,etc
13. Winzu-216551-W-11 summons for MBQ4067, WLQ32, WMM32, etc
14. Yeowchuan-115605-T-1 summon for WDT7338

GST-Blocked Input Tax (BL)

Recognize as expenses - GST Not claimable account
Blocked Input Tax Included:

• Passenger motor car or hiring of passenger motorcar
• Club subscription fees
• Medical and personal accident insurance premium
• Medical expenses
• Family benefits
• Entertainment expenses 

Passenger motor car as a motor car of a kind normally used on public roads that is constructed or adapted for carrying not more than nine passengers including the driver and unladen weight of which does not exceed 3000 kilograms.

Club subscription fees as any joining fee, subscription fee, membership fee, transfer fee or other consideration charged by any club, association, society or organization established principally for recreational or sporting purpose or by the transferor of the membership or such club, association, society or organization.

Medical and personal accident insurance premium as any payment or contribution for insurance contract:-

• to indemnify the taxable person against the cost of medical treatment to any person
• to cover the cost of medical treatment in which the insured is any person employed by the taxable person or
• to cover cost of personal accident in which the insured is any person employed by the taxable person

Medical expenses as any medical expenses in connection with the provision of medical treatment to any person employed by the taxable person

Family benefits as any benefits (including hospitality of any kind) provided by the taxable person who is the wife, husband, child or relative of any person employed by the taxable person for the purposes of any business carried on or to be carried on by the taxable person.

Entertainment expenses as expenses incurred on spouse or family members and potential clients

Daycare, Tuition, Transportation

Hi hope this post can help out all the parents out there. Thanks.

Daycare/Tuition/Home Tuition

1. Pusat Tuisyen Bintang Sinar. Address: J-2-9, Connaught Avenue, Jalan 9, Taman Bukit Cheras, 56000 Cheras, Kuala Lumpur. Tel: 03-91070005, 012-6903003.
2. Mr Loh Tel: 012-6880544, 012-2886195 also can visit www.tuitonplanet.com and Tutors Needed (Part/Full Time) at RM 35-RM120/hour.
3. Ms Ng Tel: 03-42801788, 010-2782623.
4. Genesis Education Centre Sdn Bhd.(1097567-K). Address: No.2, Lorong Cinta Alam E, Country Heights Kajang, Selangor. Tel: 019-2166477, 03-87400000, 012-2977355 (S.S.Huang), Email: info@homeschool.my, Can visit www.homeschool.my, Facebook: Malaysiahomeschooler, Got SCHOLARSHIP available at www.homeschool.my/scholarship.
5. Harvard Resources. Tel: 010-6699923, 014-3216215 can check up on http://harvardhometutor.com/tuition-rate/
6. Taska Seri Yulek. Address: No39, Jalan Badam 2, Taman Rakyat, 56180 Cheras. Tel: 017-8702783 (Ms Tan), 03-91333027.
7. Super Education Group. Address: 4, Jalan Kaskas 2, Taman Cheras, Kuala Lumpur. Tel: 03-91331400, 012-3041400.
8. Mega Tuisyen Centre. Address: 31-1A, Jalan Teratai 1/2E, Taman Bukit Teratai, 68000 Ampang. Tel: 016-2718442, 011-27068535.
9. Home Tuition Leaning. Tel: 016-3954243, 016-6507739, Email: hometuition_learning@yahoo.com
10. Ms Lee Tel: 012-2360126
11. My Home Tuition. Address: No 39-A, First Floor, Jalan Bunga Tanjng 18, Taman Seraya, 56200 Cheras. Tel: 010-8979877, 03-42878233
12. MRC Kids. Address: No 30A & 30B, Jalan Bunga Tanjung 9B, Taman Putra, 68000 Ampang, No. 5, Jalan Badam 6, Taman Cheras, 56100 Cheras, No 2, Jalan Melur 18, Taman Melur, 68000 Ampang. Tel: 017-4937297 (Cecelia Sim), Email: jsp-kul-tmm@mrc.edu.my, kids-kul-tmm@mrc.edu.my

If you wish to add more details on my post can WhatsApp to 01128241483. Thanks for sharing.