Who is online?
In total there are 2 users online :: 0 Registered, 0 Hidden and 2 Guests

None

[ View the whole list ]


Most users ever online was 25 on Thu Mar 12, 2015 5:00 pm
Latest topics
» This forum no longer accept new postings
Fri Jul 03, 2015 9:34 am by joseph

» Industrial Diesel
Fri Jul 03, 2015 9:11 am by joseph

» ICT industry
Fri Jul 03, 2015 9:10 am by joseph

» Input Tax (Passenger Car for business purpose)
Mon Jun 29, 2015 5:25 pm by joseph

» Conditions to Claim Input Tax
Mon Jun 29, 2015 3:12 pm by joseph

» Additional industry code
Sun Jun 28, 2015 5:53 pm by joseph

» Sales Commisions
Fri Jun 26, 2015 7:44 pm by Poon1

» Advance payment for services not rendered yet
Thu Jun 25, 2015 4:13 pm by joseph

» Turnover Below RM500,000 subequent to GST registration
Wed Jun 24, 2015 6:16 pm by joseph

» Consigment Sales
Wed Jun 24, 2015 6:00 pm by joseph

» GST Accounting Entries
Tue Jun 23, 2015 10:21 pm by joseph

» Advance payment received from Customer
Tue Jun 23, 2015 5:45 pm by joseph

Statistics
We have 351 registered users
The newest registered user is emtng

Our users have posted a total of 570 messages in 139 subjects
Search
 
 

Display results as :
 


Rechercher Advanced Search


Input Tax on Legal Fees

View previous topic View next topic Go down

Input Tax on Legal Fees

Post by CCMei3222 on Thu Jun 18, 2015 4:01 pm

Can a company claim input tax on Legal Fees incurred for the purpose of court case against a default trade Debtor ?

CCMei3222

Posts : 6
Join date : 2015-06-18

Back to top Go down

Re: Input Tax on Legal Fees

Post by joseph on Fri Jun 19, 2015 12:33 pm

The questions you should ask:
1) is the fee incurred in the course or for furtherance of business?
2) is the fee incurred attributable to making of taxable supply?

If both answers are positive, then the input tax is claimable.

If the legal fee is incurred to recover a debt from sale of residential property, it is not claimable because sale of residential property is an exempt supply.

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

Posts : 277
Join date : 2014-09-25

Back to top Go down

Re: Input Tax on Legal Fees

Post by CCMei3222 on Fri Jun 19, 2015 1:14 pm

Is default Trade Debtor, long overdue accounts for supplying of goods ( co. core business).

So, is recovering of bad debt consider as furtherance of business ?

Thanks for replying.

CCMei3222

Posts : 6
Join date : 2015-06-18

Back to top Go down

Re: Input Tax on Legal Fees

Post by CCMei3222 on Fri Jun 19, 2015 1:16 pm

the supply( to the bad debts) was made before 1st April 2015, but the legal fees was billed to us in April 2015, with 6% GST.

CCMei3222

Posts : 6
Join date : 2015-06-18

Back to top Go down

Re: Input Tax on Legal Fees

Post by joseph on Fri Jun 19, 2015 3:23 pm

Yes, claimable.

_________________


DISCLAIMER:
Any opinion expressed is strictly my personal view based on my understanding and interpretation of the GST Act 2014, Regulations, Orders, DG's Panel Decisions and Customs' Guides. You should seek advice from experts and/or the Customs Dept if the subject matter is significant to your business.

joseph

Posts : 277
Join date : 2014-09-25

Back to top Go down

Re: Input Tax on Legal Fees

Post by CCMei3222 on Fri Jun 19, 2015 4:57 pm

Tqvm

CCMei3222

Posts : 6
Join date : 2015-06-18

Back to top Go down

Re: Input Tax on Legal Fees

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum