Sales Tax Act 2018 imposes on manufacturing and oil and gas sectors. It is an enhanced of the then, 1972 Sales Tax model, with hefty responsibilities on directors’ for strict compliance. The sales tax legislation although is simple in its mechanism, yet it possess challenges in all dimensions as to its scope of coverage, sales tax administration and compliance matters.
The scope of sales tax involve 6,000 goods as compare to 11,197 goods in Goods and Services Tax (GST). The narrow scope of sales tax coverage on manufacturer would thus not burden the society, able to grow the SMI industries, what more those manufacturers of non-taxable goods, below threshold of RM500,000 are also exclusion from registration. These all in all would translate into lower prices of goods and services in Sales and Service Tax (SST) regime.
This book attempts to explain the concept, methodology and its theoretical frameworks with practical illustration highlighting the essential applications of the various provisions of the Sales Tax Act 2018. The facilities available for sales tax exemption on taxable goods, import compliance, raw materials used in manufacturing process, the ambit of “manufacture”, invoice issued and its format, returns submission, payment compliance, taxable person, taxable period, sales value determination, bad debts refund and recovered are explained with illustrations. The offences and penalties to mitigate the tax risk are also discussed.
It is my earnest wish that this book able to ease up the sales tax implementation, embedding essential features into the business system. Every businessman owes an ethical commitments to ensure the success of sales tax as the core system for the business and country, working towards the sustenance of the price of goods and services.
Sales Tax for Business Enterprises arguably is a complete practical guide that explains the sales tax frameworks together with the concept and methodology. Essential concepts of “manufacture”, invoice issued and its format, returns submission, payment compliance, taxable person, taxable period, sales value determination, bad debts refund and recovered, offences and penalties are explained with practical applications. These features have to be incorporated into the business system for it to take effect on 1 September 2018.
The topics covered include:
GST Transition to SST
Sales Tax Registration
Sales Tax Concept and Mechanism
Sales Tax Pricing and Valuation Methodology
Taxable Period, Sales Tax Return and Payment
Invoice, Credit/Debit Notes
Bad Debt Relief and Bad Debt Recovered
Penalties and Offences
This is a must have source of reference for business entrepreneurs, directors of companies, LLP partners, CFO and finance directors, account manager, accountants, business consultants, tax agents, auditors, legal personnel and all those involved in the transition from GST into the SST regime.