Stamp Duty, SAles Tax & Service Tax - Week 6

8/8/2019 Stamp Duty, SAles Tax & Service Tax - Week 6

1/26

Introduction To Taxation

Stamp Duty

Sales & Service Tax


2/26

BM058-3.5-2-ITAX Introduction To Taxation Stamp Duty, Sales Tax & Service Tax

LEARNING OUTCOME

Understand the property chargeable to

stamp duty and applicable exemptions

Apply the knowledge in calculating the

duty payable

Understand the meaning of Sales Tax and

applying the knowledge in the calculation

of tax payable Understand the meaning of Sales Tax and

applying the knowledge in the calculation

of tax payable Slide 2 of26


3/26


Topic & Structure of the lesson

Introduction to Stamp duty

Types of stamp duty

Stamp duty rates

Stamp Duty exemption

Penalty for late payment Introduction to sales tax

Taxable period for sales tax

Rates for sales tax

Penalty for late payment charges

Licensing

Exemption for sales tax

Drawbacks for sales tax

Introduction to service tax

taxable period

Slide 3 of26


4/26


Key Terms you must be able to use

Stamp duty

Ad valorem duties

Fixed duties Sales tax

Taxable period

Licensing Taxable goods

Taxable services

Slide 4 of26


5/26


INTRODUCTION

Stamp duty is chargeable on certain

instruments and documents

The rate of duty varies according to the

nature of the instrument and transactedvalue.

Exemption of stamp duty is given on

certain instruments and documents Stamp duty is charged under the Stamp

Act 1949, Stamp Duty(Exemption) Order

and Stamp Duty (Remission) Order Slide 5 of26


6/26


TYPES OF STAMP DUTY

There are two type:

Fixed duties fixed sum which does not

vary with the value of transaction specifiedin the instrument.

Ad valorem duty stamp duty that varies

with the value of the transaction asspecified in the instrument.

Slide 6 of26


7/26


STAMP DUTY RATES

The value to be used is the market value of the

property or the money consideration, which ever is

greater.

Stock, shares or marketable securities the rate is

RM3 per RM 1,000 or part thereof

Conveyance, Assignment or transfer

Value RM000 Rate Duty PayableRM

On the 1st 100 RM 1 per RM100 or part thereof 1,000

On the next 400 RM2 per RM100 or part thereof 8,000

In excess of 500 RM3 per RM100 or part thereof

Slide 7 of26


8/26


SECTION 12A

Under Section 12 A The date for determining market value

of the assessment of the value of property under transfer or

settlement are as follows :

Settlement or gift Date of execution of the instrument of trust, settlement or gift

Sale under a duly stamped sale and purchase

agreement

Date of execution of the agreement

Transfer of property granted by a statutory

body, local authority or any co-operative

society

Date when the final terms of transfer has

been communicated to the transferee

Subsequent resale of the above Date of consent by the statutory body, local

authority, board of the co-operative society

Duly stamped sale and purchase agreement

where financial arrangement have been made

Date of execution of the agreement

Any other case Date of execution of the instrument of transfer

Slide 8 of26


9/26


STAMP DUTY EXEMPTION

Purchase of low cost house, provided

execution of sale and purchase agreement

was done on or after 1 July 2002 All instrument relating to the issue and

transfer of company bonds.

Effective8

September200

7, all instrumentaffecting the transfer of any landed

property from husband to wife vice versa

is exempted.

Slide 9 of26


10/26


STAMP DUTY EXEMPTION

All instrument relating to purchase of

debentures or Islamic securities approved

by the Securities Commission All instrument pursuant to merge or

acquisition of public listed companies

approved by the Securities Commission

from 1/1/2008 31/12/2010

Slide 10 of26


11/26


PENALTY FOR LATE STAMPING

Any instrument not stamped within the

permitted period may be stamped on

payment of :

RM25 or5% of the deficient duty whichever is

greater if stamped within 3 months after

deadline

R

M50or 1

0%of the deficient duty whichever isgreater if stamped after3 months but before 6

months after deadline

RM100 or20% of deficient duty whichever is

greater in any other case Slide 11 of 26


12/26


INTRODUCTION TO SALES TAX

Sales tax is a single tax levied on certain

imported and locally manufactured goods,

at time of importation or at the time the

goods are sold or disposed by the

manufacturer

Taxable goods means goods

manufactured or imported are taxableunless they are specifically exempted

Slide 12 of26


13/26


BASIS OF TAXATION

Sales tax is a consumption tax and under

the system, the onus is on manufacturers

of taxable goods to levy, charge andcollect the tax from their customers

For imported goods, sales tax is collected

from the importer upon the release of

taxable goods from Customs control

Slide 13 of26


14/26


RATES OF TAX

Sales tax is an ad valorum tax and can be computed

based on the value of taxable goods sold, used or

disposed of or imported

Sales tax is chargeable at the following rate:

Class of goods Rate (%)

Fruits, certain foodstuff, timber and building material 5

Liquor and alcoholic drinks 5

Cigarettes and tobacco products 5

All other goods not specifically exempted 1 0

Slide 14 of 26


15/26


SALES TAX PAYABLE

Sales tax charged to the licensed manufacturer mustbe paid to the Customs Department in the prescribed

form within 28 days after the month end of each

taxable period

There are 6 taxable periods in each calender yearwhich are follows:-

Taxable Period Due Dates for tax to be paid

January to February 28March

March to April 28May

May to June 28 July

July to August 28 September

September to October 28 November

November to December 28 January

Slide 15 of26


16/26


PENALTY

If a licensed manufacturer fails to pay the

sales tax due within the stipulated period

of28 days, a penalty of 10% shall be

imposed on the amount due

If the amount due remains unpaid the

penalty is increased by 2% for every

succeeding period of30 days or partthereof

The maximum penalty lived is 50%

Slide 16 of26


17/26


LICENSING

Any person engaged in the manufacture of

taxable goods is required to apply for a

license.

A manufacturer of taxable goods whose

total sales value did not exceed RM

100,000 in the preceding year and is not

expected to exceed RM 100,000 duringthe next 12 months may apply for a

certificate of exemption from licensing

Slide 17 of 26


18/26


GOODS EXEMPTED

All exports are exempted from sales tax

Proof of export is necessary by way of customs

export declaration and the licensed

manufacturers export invoice Any person other than a licensed manufacturer

may be exempted from payment of sales tax

when he exports goods purchased from

licensed manufacturer within 6 months from

date of purchase.

Prior approval from the Director General of

Custom is required. Slide 18 of26


19/26


REFUNDS,DRAWBACKS AND

REMISSION A licensed manufacturer or importer can apply for

refund of sales tax that have been paid by reason

of error provided the claim is made within 1 year

after the payment is made

A licensed manufacturer or importer can claim

drawback of full amount of the sales tax paid in

respect of goods which were subsequently

exported Application to claim drawback must be within 3

months from the date the goods are exported and

the goods must be exported within 12 months from

the date sales tax has been paid Slide 19 of 26


20/26


REFUNDS,DRAWBACKS AND

REMISSION

Notice claiming sales tax drawback shall

be endorsed on Export Declaration form

The Minister of Finance has the power toremit the whole or any part of sales tax

due and payable or penalty payable.

A licensed manufacturer who is not able topay the sales tax payable may apply for

remission to the Minister of Finance.

Slide 20 of26


21/26


SERVICE TAX -

INTRODUCTION

Service tax is a consumption tax levied

and charged on any taxable service

provided by any taxable person The Service Tax Act 1975 applies

throughout Malaysia excluding Langkawi,

Labuan, Tioman and the Joint

Development Authority (JDA)

Slide 21 of26


22/26


SERVICE TAX

INTRODUCTION

Service Tax is levied in respect of the

following :

Prescribed Services or Taxable Servicesprovided by or in any prescribed

establishment(provided in handouts) or

prescribed professional

establishment(provided in handouts)Prescribed Goods or Taxable Goods sold or

provided either by or in any prescribed

establishment(provided in handouts)Slide 22 of26


23/26


RETURNS AND PAYMENT

Service tax charged must be paid to the Customs

Department in the prescribed form within 28 days after

the month end of each taxable period

There are 6 taxable periods in each calender year whichare follows:-

Taxable Period Due Dates for tax to be paid

January to February 28 March

March to April 28May

May to June 28 July

July to August 28 September

September to October 28 November

November to December 28 January

Slide 23 of26


24/26


PENALTY

If a licensed manufacturer fails to pay the

sales tax due within the stipulated period

of28

days, a penalty of 10%

shall beimposed on the amount due

If the amount due remains unpaid the

penalty is increased by 10% for every

succeeding period of30 days or part

thereof

The maximum penalty lived is 50%

Slide 24 of26


25/26


Question & Answer Session

Slide 25 of26


26/26


NEXT SESSION

IN

DIVIDUAL TAXATION

Slide 26 of26

Date post:	10-Apr-2018
Category:	Documents
Upload:	sha118
View:	217 times
Download:	0 times

Stamp Duty, SAles Tax & Service Tax - Week 6

Documents