Who is online?
In total there are 6 users online :: 0 Registered, 0 Hidden and 6 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


Deemed Supply

View previous topic View next topic Go down

Deemed Supply

Post by Admin on Sun Dec 14, 2014 2:25 am

Generally, goods or services supplied without consideration is regarded as not a supply and is not subject to GST.

However, under certain circumstances a supply of goods or services without consideration may be deemed as a supply (deemed supply) and GST is chargeable at 6%.

List of deemed supply is as follows:-
1.  Business gift of value of more than RM500.
2.  Disposal of business assets without consideration
3.  Private use of business assets
4.  Supply of services to connected persons

Admin
Admin

Posts : 47
Join date : 2014-07-30

http://malaysiagst.forumms.net

Back to top Go down

Re: Deemed Supply

Post by Edin on Fri Jan 16, 2015 1:18 pm

How about cash given as a present, which exceed RM 500 /person/ year (for Hari Raya, Chinese New Year etc), is it deemed supply? Generally money is not good and shall not be taxable under GST.

Edin

Posts : 11
Join date : 2015-01-02

Back to top Go down

Re: Deemed Supply

Post by joseph on Fri Jan 16, 2015 2:45 pm

You are right! Money is neither goods nor services and is not subject to GST. Money cannot be consumed. When you use the money to purchase goods subsequently, you will be subject to GST.

Therefore, you will not be taxed when you receive money as a gift, because then you will be subjected to double tax.

_________________


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: Deemed Supply

Post by bubu1101 on Sun Mar 08, 2015 10:11 pm

If our company sponsor an event activity to a company or Institution, The sponsorship will be in money and more than RM10k, so how's the treatment for this kind of transaction??

bubu1101

Posts : 16
Join date : 2015-03-08

Back to top Go down

Re: Deemed Supply

Post by joseph on Mon Mar 09, 2015 10:22 pm

If there is benefits in return, e.g. your company's name is prominently mentioned in the event activity, the sponsorship money is considered as consideration for advertising/promotional services provided by the company/institution. The company/institution will have to raise a Tax Invoice to your company and charge GST.

If there is no benefits in return, or merely an acknowledgement that your company sponsored the event, then such cash donation is not a supply and not subject to GST.

_________________


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: Deemed Supply

Post by joseph on Tue Mar 10, 2015 9:44 am

The word is publicity, not so much about advertising/promotional services.

_________________


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: Deemed Supply

Post by bubu1101 on Sun Mar 29, 2015 12:16 am

We have some old CPU & Accessories, and decided to sell to our employees, for the business Fixed assets sell to employees, is it treat as deem supply to employees?

Is it need to charge 6% to our employees for the CPU sold??
or
We have to bear the output tax???

bubu1101

Posts : 16
Join date : 2015-03-08

Back to top Go down

Re: Deemed Supply

Post by emhan on Sun Mar 29, 2015 11:39 am

Hi

If the company sponsors shopping vouchers to customers, will it fall under gift rule? Because it is equivalent to cash sponsor to customers.

Thank you.

emhan

Posts : 20
Join date : 2015-02-24

Back to top Go down

Re: Deemed Supply

Post by joseph on Mon Mar 30, 2015 10:33 am

Is your voucher monetary (RM50 Cash Voucher) or non-monetary (free iPhone 6)?

If monetary, no GST upon issuance. If non-monetary, subject to Gift Rule.

_________________


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: Deemed Supply

Post by bubu1101 on Mon Mar 30, 2015 11:08 am

We have some old CPU & Accessories, and decided to sell to our employees, for the business Fixed assets sell to employees, is it treat as deem supply to employees?

Is it need to charge 6% to our employees for the CPU sold??
or
We have to bear the output tax???

bubu1101

Posts : 16
Join date : 2015-03-08

Back to top Go down

Re: Deemed Supply

Post by joseph on Mon Mar 30, 2015 11:22 am

If you sell with consideration, it is a supply of goods.

Let's say, you sell an old PC to your staff at RM100 -> then issue a tax invoice for RM106, RM6 being the GST charged.

Should you decide to sell it at RM100 (GST-inclusive), then GST amount is RM100 x 6/106 = RM5.66.

_________________


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: Deemed Supply

Post by honeystar34 on Thu Apr 23, 2015 11:40 pm

Is the trade offer for example buy 5, foc 1, is this also categories under gift rules & we need to account for output tax?

honeystar34

Posts : 8
Join date : 2015-04-23

Back to top Go down

Re: Deemed Supply

Post by joseph on Fri Apr 24, 2015 9:53 am

No, B5F1 the F1 is a discount. Only account for output tax based on the discounted sales amount.

_________________


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: Deemed Supply

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