GST Transitional Period
Download as PPTX, PDF1 like2,407 views
The document outlines the guidelines for sales tax and service tax payments during the GST transitional period, specifically focusing on pre-GST transactions and related refund processes. It details when to submit sales tax returns, claim bad debt relief, and how to handle returns of goods and services after the GST implementation date. Additionally, it explains the criteria for special refunds and outlines the treatment of various goods concerning respective tax obligations.
GST Transitional Period
- 1. GST Transitional Period Loh Boon How Chartered Accountant
- 2. When to pay sales tax? 1. If a sales tax licensee is not a GST registered person. a. Raw materials and component held on 1/4/15, b. Finished and semi finished held on 1/4/2015, c. Supplies before 1/4/2015, but invoice and payment before 1/4/2015 B. H. Loh & Associates 2
- 3. When to pay sales tax? • Submit the sales tax return CJP 1 not later 28/4/2015 2. If sales tax licensee is a GST registered person on 1/4/15, there will no liability to account sales tax. B. H. Loh & Associates 3
- 4. When to pay service tax? a. The unpaid service tax amount exceeding 12 months from the date of invoice, b. The service tax in last taxable period, c. Supplied before 1/4/2015, but the invoice and payment on or after 1/4/2015 B. H. Loh & Associates 4
- 5. When to pay service tax • The tax return submitted on : a. The latest 28/4/2015 – Form CJP 1, b. Not exceed 12 months period from 1/4/2015 – Lampiran H B. H. Loh & Associates 5
- 6. What is bad debt relief and subsequent received? B. H. Loh & Associates 6 Bad debt relief is claimable in 6 years Sales tax paid 1/1/2015 1/4/2015 Subsequent collect to account sales tax 1/7/2015 GST implementation
- 7. What if goods sold before 1/4/15 but return after 1/4/15? B. H. Loh & Associates • The manufacturer can claim sales tax refund by using the form JKED 2, • The good return due to the wrong quantity, poor quality or uncontract good. Sales tax paid Good return GST implementation 7 1/1/15 1/4/15 1/6/15
- 8. What if service perform before 1/4/15 but terminate after 1/4/15? B. H. Loh & Associates • The service provider can claim service tax refund by using the form JKED 2 Refundable within 6 years from the services tax paid Services tax paid Issued credit note for Service terminate GST implementation 1/1/15 1/4/15 1/6/15 8
- 9. What is progressive supply? B. H. Loh & Associates 9 Sales & services tax Supply of goods and services Scenario 1 Payment received / invoice issued 1/3/15 1/4/15 1/5/15
- 10. What is progressive supply? B. H. Loh & Associates Goods and Services tax Payment received / invoice issued Scenario 2 Sales & services tax Progressive supply of goods and services 1/3/15 1/4/15 1/5/15 10
- 11. What is progressive supply? B. H. Loh & Associates 11 Goods and Services tax Supply of goods and services Payment received / invoice issued Scenario 3 1/3/15 1/4/15 1/5/15
- 12. What is progressive supply? B. H. Loh & Associates Sales & services tax Payment received / invoice issued Scenario 4 Goods and Services tax Progressive supply of goods and services 1/3/15 1/4/15 1/5/15 12
- 13. What is special refund? 1. The register mandatorily, 2. The good held on 1/4/2015, 3. The goods are subject to sales tax and services tax, 4. Holding the relevant supplier’s invoice (Prove of the recipient of the goods), 5. Holding the import document (Prove the importer is the owner of the goods). B. H. Loh & Associates 13
- 14. What is special refund? B. H. Loh & Associates 14 • If the claimant unable to show proof that sales tax has been paid on 1/4/2015. Example : Sales tax not stated in the invoice Special refund = purchase price x 20% x sales tax rate applicable 20% method
- 15. What is special refund? No Stock value Certified (a) Less that RM10,000 The audit certificate issue by chartered accountant (b) More that RM10,000 The audit certificate issued by company auditor B. H. Loh & Associates 15 Stock count – identified the sales tax paid • Submit within 6 months from 1/4/2015 through Tax Access Point, only one time with no correction allowed
- 16. How does special refund work? • The special refund will be off-set against unpaid sales tax, services tax, GST and other taxes. The balance will be refunded on a quarterly basis over 2 years. • If discover, false, inaccurate, misleading or misrepresented, the DG may withhold the unpaid refund B. H. Loh & Associates 16
- 17. What is special refund subsequently return? • If the claimant refunded and subsequently returns, he must account for output tax. Failing to account for return will subject to penalty. B. H. Loh & Associates 17
- 18. What goods not entitled to special refund? • Goods used for packing materials, label • Raw materials directly used in finished goods, such as : textile and buttons, • Goods held for hire, Such as generator, • Goods for hobby, • Goods not for sales, such as : stationery, cleaning • Capital asset • Goods purchase with sales tax and subsequently exported, • Goods entitled to claim sales tax deduction B. H. Loh & Associates 18
- 19. When does contract supply charge GST? • No opportunity to review – on or after the introduction of GST with 0 rated supply for a period of 5 years B. H. Loh & Associates 5 years GST charge No GST charge 0 rated 1/6/12 1/4/15 31/3/2020 19
- 20. When does contract supply charge GST? • An opportunity to review – the supply will be subject to GST when the review opportunity arise B. H. Loh & Associates Review opportunity No GST charge charge 0 rated GST 1/6/12 1/4/15 31/5/16 20
- 21. Thank you B. H. Loh & Associates Address : No. 1-3-15, Goldhill Complex, Tingkat Paya Terubong 1, 11060 Penang. H/P No. : 016-4893382 Email : bhlohass@gmail.com Web-site / facebook : bhloh.com.my B. H. Loh & Associates 21