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Deemed Supply EmptyFri Jul 03, 2015 9:34 am by joseph

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» ICT industry
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» Input Tax (Passenger Car for business purpose)
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» Conditions to Claim Input Tax
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» Additional industry code
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» Sales Commisions
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» Turnover Below RM500,000 subequent to GST registration
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Deemed Supply

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Edin
Admin
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Deemed Supply Empty Deemed Supply

Post by Admin 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
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Join date : 2014-07-30

https://malaysiagst.forumms.net

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Post by Edin 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

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Post by joseph 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.

joseph

Posts : 277
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Post by bubu1101 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

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Post by joseph 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.

joseph

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

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

joseph

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Post by bubu1101 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
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Post by emhan 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

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Post by joseph 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.

joseph

Posts : 277
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Post by bubu1101 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

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Post by joseph 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.

joseph

Posts : 277
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Post by honeystar34 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

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Post by joseph 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.

joseph

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