UPDATES AND INSIGHTS OF UP-TO-2020 SINCE IMPLEMENTATION AS AT TODAY.

IMPLEMENTATION MECHANISM AND ITS COMMON ASSOCIATED ISSUES TO AVOID AND OVERCOME

A. REGISTRATION

• General Threshold and its determination – what is in and what is out?
  
• Understand the Single Taxable person concept – what is it?
  
• Registration Cancellation and its deemed sales under sales tax.
  
• Transfer of Going Concerns under Sales Tax
  
• Responsibilities of a Registered Person.

B. SALES TAX IMPLEMENTATION

• Taxable areas and its valuation for tax purpose for 3rd party and inter-company transactions – A real life experience to be shared by the Trainer.
  
• Definition of Manufacturing and resolving its dispute on its meaning.
  
• HS Code / Customs Tariff Code and the Determining the Rate of Tax – a real life experience to share. A real life experience to be shared by the Trainer.
  
• Types of exemptions under the exemption orders:
  a. Goods exempted from charging sales tax
  b. Persons exempted from paying sales tax – terms and conditions under:
  i. Schedule C –
  -- Registered Manufacturers purchase direct,
  -- Registered Manufacturers purchase through 3rd parties
  -- Registered Manufacturers as and/or using labor contractors
  ii. Schedule B – Non- Register Manufacturer on their production of 4 Category of specific sales tax exempted goods. Crucial for item 1 of the schedule.
  iii. Schedule A – Other categories of person and its conditions requirements.
  iv. MIDA support items under Schedule A procedures and conditions.
  c. Quarterly record keeping and periodical reporting requirements for goods under exemption, including breaching the conditions of exemption
  d. 20 business activities exempted from sales tax registration. Crucial of single and not joint activities like meal preparation and incorporating of materials into buildings.
  
• Sales Tax Credit Systems.
  
• Treatment for import and goods movement to and from:
  a. Designated Areas
  b. Special Areas (be fully aware of the Imposition of Sales Tax for goods sold to Special Area Order)
  
• Definition of Export and its documentation criteria requirements, including goods sold to LMW.
  
• Sales Tax drawback facilities.

C. SERVICE TAX IMPLEMENTATION

• Introduction of Digital Tax.
  
• Service Provider and its 31 categories / 9 groups of Taxable services
  
• Scope of taxable services in each category / group and when is Rental subject to service tax.
  
• Key emphasis on Management Services including Project Management, Consultancy, Cleaning, etc.
  
• Treatment of conditional and unconditional grants received
• Service Tax treatment under Student exchange programs
  
• Person exempted from paying service tax facilities criteria
  
• Treatment of imported services requirement by all businesses including Non-SST register companies.
  
• Inter-Company Professional Services and definition of group companies AND when are these services taxable also to Group Companies.
  
• Treatment for services supplies within, to and from:
  -- Designated Areas
  -- Special Areas
  
• Service Tax treatment of for exempted services provided by sub-contractor to main contractor, e.g., under preventive maintenance, residential properties, etc.

D. ACCOUNTING ADMINISTRATION

• Invoice, Debit Note and Credit Note:
  -- Standard prescribed particulars requirement.
  -- Prescribed particulars requirements to person exempted from paying service tax.
  
• Filing of Returns, Payment of Tax and Filing of Supplementary Returns.
  
• Bad Debt Relief strict criterias’
  
• Refund on SST over paid or paid in Error and understanding the impact of wordings “unjustly enriching the claimant” condition.
  
• Service Tax contra system.

HEALTH CHECK FOR AUDIT PREPARATION

• Key common areas to look out for errors for in the above Sales Tax and Service Tax implementation.
  
• Audit coverage and awareness
  
• Appeal procedures and judicial review