Hi Kasturi, You will not able to check the whole list, but you can verify whether a company has registered with GST by checking its GST registration number stated in its tax invoice with Customs Official Website. If we sell a land which can be used for Agriculture, industrial and residential, in my Understanding after 5 years, there will be tax free do we still need to pay for GST? Hi Hong, I am not sure on your statement where tax free after 5 years, I believe it would be real property gains tax.
Land for residential or agriculture use will be exempted from GST. We are a trading company doing import, export and local market as well.
For import, do we need to pay for GST? Hi Rajib, first, your income tax will have nothing to do with GST, so no impact. But income tax rates have been lower to accommodate the introduction of GST system.
Thanks and appreciate your reply. Dear Angelina, Thanks for your kindly replied.. Yes, Chris, you need to account for GST on the imported services. However, you just need to account for it in the GST Return as you are going to claim back the credit at the same return. For example, gst from electricity, telephone, table, materials, equipment. Q1 — Yes, every sales. Q2 — No, all your customers have to pay GST as they are end users. Question 1.
Is that all kind of lands exempted from GST? The grant of any interest or right over land or of any license:— a to occupy land or building for residential purposes where the land or building is designed or adapted, for use or intended to be used as dwelling excluding hotel, inn, boarding house or similar establishment of sleeping accommodation; b to occupy land for agricultural purposes excluding the grant of any interest or right over land or license to occupy land to the extent the land is being used for hunting and fishing activities; c to occupy land for or intended for general use.
The supply of services to owners in a. It is just like you examine my mind! You appear to understand a whole lot concerning this, like you had written the book there or something. I think that you could do with quite a few images drive an automobile the solution residence slightly, but rather than which, it is superb weblog.
A great examine. I will certainly be back. I am running private education business. Would i need to charge gst on d disposal of my private property ie condos or car? I just want to check whether those imported clothing or branded clothing are imposed woth GST or not? From what I understand from the above FAQs, it stated rakyat will get benefits from clothing and footwears and so forth.
Does this mean that the prices for these goods will be reduced since GST is going to replace the sales tax? We do sell secondhand air conditioner to end consumers. Do I need to charge gst to my customers? It seems secondhand product is exempted from gst.
Pls advise. No, selling second hand product is part of your business activities, so you need to charge GST on all products you are selling or services you are providing. My car insurance expires in end of May. My question is, is there any GST tax charges within the same group of company. We call it as internal charges. Employee is hiring thru Malaysia, But all the sales revenue and cost of good sales will be directly go to Singapore.
For the staff salary is paid thru Malaysia, but at month end,we will charge back to Singapore. Am I need to charge gst? Thank you! Are medicines and drugs are subject to GST? Developer build residential houses is supply excempted and cannot claim the tax input credit. So, the tax credit by supplier to be absord by developer. Is it can be treat as a cost or expenses in the business income? Coz, normally tax input credit is under asset and not expenses.
If cannot claim as cost under profit and loss account, so these input tax credit how to show in accounting? Pls advice. Do you know? There are 93 comments for this article. Thanks for the info! May i ask if it will affect me as a college student? Thanks, Evy, for helping in asnwering. You can check the list of certified gst consultants at the royal customs malaysia website. Hi, I am a housewife and collect RM, in rental annually. Am I exempted from GST?
By looking at your case, you do not need to charge. RKM, medical services are exempt supply, no need to register. Help me with my assignments.
HV, no gst charged then no gst need to be paid to government. Very likely yes on the rental of the shop, please check with your landlord. If yes, please ask for the tax invoice from your landlord every month.
Halo, is it the GST will be imposed on any loans? No, loan is exempt supply, so no gst. Hi, How to start up the GST-accounting system in the sole proprietor business that managed by old businessman 70 years old? In this illustration below, Overseas Principal had offer to pay us RM5, for licence renewal:- 1. Thank you for your help.
Regards Jimmy Tan. Hi Sze Kiong, 1. Yes, Ricky, all will subject to GST then. Hi Nur, I do not get your question. Personal advice, never try to avoid it. Hi, We are online service provider company. Hi Pal, exports are not subject to GST as it is out of scope supply.
These is a Sdn Bhd company which carry on business with more than RMk annual income. At the same time we received commercial rental income. Are the rental income need to charge GST? Hi Nancy, if you can, do it before GST. Either way you need to pay more. If rental property is a residential,it is a exempt supply and therefore no gst is chargeable. Hi Nurul, technically, yes or no. The company in Malaysia which receiving the service need to account for GST.
In this case, could GST apply on the intermediary company? But this service can only be provided after the GST system is running next year. Furthermore, disposal of land falls under Exempt Supply, so no gst. Yes, Ng, all imports are subject to GST. You will need to pay GST on top of custom duty paid. He stated that the rise in prices was not due to the implementation of GST and there were other factors including foreign exchange rate fluctuations, transportation, and other marketing aspects.
So, this also caused price increases but it is unclear why this factor was excluded. It is commonly argued that if GST is revenue neutral, it is unlikely to affect prices much unless the tax base is substantially different from the old tax base. In the short-term, GST will generate a temporary price hike and there will be less consumer demand for goods and services due to higher prices.
Also, GST has a broader base than SST and so normally in the short-term, some prices will increase; but in the long run the prices of goods and services should fall as the embedded cost of the previous tax on business inputs are removed. So, theoretically prices will fall in the long run. However, tax adviser Dr. Veerinderjeet Singh on 3 August, argued that prices of goods continued to rise notwithstanding the zero rating of GST on certain goods because the Ministry of Domestic Trade and Consumer Affairs had failed to implement the Price Control and Anti-Profiteering Act effectively.
He suggested that the Ministry may need more staff well versed in the accounting systems to be able to monitor unwarranted price increases. Currently it seems this expertise is lacking in this department and illogical price increases of essential goods were prevalent when GST was in force.
Historically, the normal pricing of goods and services in the market is based on the production and supply of goods which is based on economic principles of supply and demand. Under the supply and demand curve, if there is an oversupply of goods, prices will fall and when there is a shortage, prices will increase.
For example, there were spiralling price increases from to in Malaysia mainly due to the scarcity of goods and services, which triggered inflation long before GST came into force. For example, in the s, a sack of bananas could be purchased for about RM However, in , even before GST was implemented, the price of bananas was extremely high, at RM1 for one banana in a supermarket.
Similar price increases were also witnessed for vegetables, fish, dairy, and meat products. So, this does confirm that GST may not be the cause for price increases since all these price increases took place before GST was introduced. Let us study the experiences in other countries that have introduced GST. Was there a price increase or decrease when GST was introduced? In three cases The price of many goods and services changed because of the GST reforms contained in the tax package.
However, it was concluded that some prices increased while other prices remained largely unchanged or even declined. It increased the consumption of food and beverages since it reduced the demand for food-agriculture products because production and supply were maintained to meet demand from consumers. However, in Malaysia, prices increased during the GST regime due to traders hiking prices to protect themselves from the uncertain effects of the new tax.
Also, unscrupulous traders took advantage of the unpredictable situation to increase prices. As such the supposition that GST was the cause for price increases is far from the truth. The recent report by the Market Competition Commission MyCC on market review of key food prices confirmed that one of the main reasons for high food prices is due to the distortion and manipulation in the food supply chain.
This article makes a 3-pronged recommendation to reduce inflationary concerns when the government considers reintroducing GST in Malaysia. Having established that GST is not the primary reason for increase in prices, we consider what can be done to reduce inflationary impact on prices.
Malaysia is not self-sufficient in food production. The country remains a net food importer with a trade deficit of RM For example, in , RM As a first step the government should study this matter and take steps to reduce the food waste so that less food may be imported in the long run.
The huge increase in food imports with a weak ringgit has resulted in import induced inflation which can increase prices without any tax impact. For example, let us assume that one litre of milk produced in Malaysia costs, say RM 1 per litre.
If this milk is imported from Australia due to an exchange rate of RM3 to AUD1, the cost has increased to RM3 in Malaysia without other freight and transportation costs. This same principle applies to all other imported food and dairy products. Prices will increase due to the weak Malaysian ringgit.
So due to our weak ringgit, we are paying more for the imported goods and services. The simple way to reduce inflation is to reduce the quantity of food imports and increase local production of essential food such as local fruits, local animal husbandry, local fish items and so forth. A good example is the recent fall in the price of durians, the drop in prices was mainly due to oversupply not because of any taxes.
Also, the recent sudden spike in computer hardware costs during COVID was due to higher demand since employees and students were mainly working from home using digital technology. Again, this confirms that taxes are not necessarily the cause for price increases. Also, national food security has been recognised as one of the key pillars of the Fourth Industrial Revolution IR4.
0コメント