The Sales and Service Tax (SST) took effect from 1 September 2018, replacing the Goods and Service Tax (GST) which was first introduced on 1 April 2015. The service tax component of the SST is particularly easy for businesses to comply with as it is a single stage tax. The SST is also people friendly as it helps to reduce the escalating prices of goods and services.
The Service Tax Act 2018 (STA) is an enhanced model of the then Service Tax Act 1975 with strict liability on incorrect return, evasion and non submission of return. Company directors, business persons, and Limited Liability Partnership (LLP)’s partners has to fully comprehend the working mechanism of the STA 2018 to avoid unnecessary penalties imposition and other risk exposures, including being held personally liable for any outstanding service tax due to the Government.
This book is a practical reference source explaining the theoretical framework of service tax, its concept and methodology, illustrating the various essential concepts and pricing methodology, such as taxable person, taxable service and taxable period, and highlighting the tax administration and compliance procedures together with the practical applications of the legislation.
It aims to provide a complete reference and guidance on the working mechanism of the STA, leading to a smooth transition and transformation from the GST into the SST regime.
We have a social responsibility to ensure a successful implementation of SST into the business setting and operations, more so to demonstrate that SST is, indeed, beneficial to business and customer friendly in maintaining the price of goods and services. This can only be achieved through a thorough understanding and appreciation of the entire concept and methodology of service tax.
It is my earnest hope that this book helps to facilitate the smooth implementation of the SST while providing guidance in addressing any inherent contentious issues lying within the STA. May the transition from the GST into the SST regime be smooth and easy.
As the new Malaysian government abolished the unpopular GST tax and moved back to the more people friendly Sales and Service tax model, prices of goods are generally expected to be lower.
Service Tax for Business Enterprises provides a practical insight into the concept, theoretical framework and practical applications of the legislation. Essential concepts, pricing methodology, service tax administration and compliance are explained and illustrated with examples. Offences and penalties for non compliance are included.
A thorough understanding of the Act by business entrepreneurs is desirable in order to avoid unnecessary penalties imposition and other risk exposures, including being held personally liable for outstanding service tax due to the Government.
The topics covered include:
· What is SST?
· Sales tax v service tax
· Scope of charge
· Taxable service and taxable person
· Import service and export service
· Taxable period and payment
· Contra mechanism
· Bad debts and bad debts recovered
· Designated areas, special areas
· Offences & penalties
· GST transitions into service tax
This is a must have reference for business entrepreneurs, directors, LLP partners, business consultants, legal counsels, accountants, auditors, tax agents and all those involved in the transition from GST into the SST regime.