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Issuance of CN on 1/4/15 for Cancellation
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Issuance of CN on 1/4/15 for Cancellation
Hi
Wish to clarify on transitional issue :-
- Company issued sales invoices on 31/3/15 for management purpose and later cancel these invoices on 1/4/15.
No delivery of goods done because accidentally issued sales invoices and immediately do the cancellation following day.
Will it trigger to be tax inclusive for sales invoices issued on 31/3/15?
Thank you.
Wish to clarify on transitional issue :-
- Company issued sales invoices on 31/3/15 for management purpose and later cancel these invoices on 1/4/15.
No delivery of goods done because accidentally issued sales invoices and immediately do the cancellation following day.
Will it trigger to be tax inclusive for sales invoices issued on 31/3/15?
Thank you.
emhan- Posts : 20
Join date : 2015-02-24
Re: Issuance of CN on 1/4/15 for Cancellation
Any cancellation after GST effective date is likely to be subjected to queries. Just cancel the invoice on 31/03/15.
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
How about goods sold in March 2015 and customer subsequently returned in April after GST started? How shall we issue CN for this?
wjtan7- Posts : 6
Join date : 2015-03-26
Re: Issuance of CN on 1/4/15 for Cancellation
Para 16 of Customs' Guide on Transitional Rules:
Issue CN to your customer as normal without GST.
If there is a sales tax and you refund the sales tax to your customer, you may claim the sales tax you refunded by using the form JKED 2.
Issue CN to your customer as normal without GST.
If there is a sales tax and you refund the sales tax to your customer, you may claim the sales tax you refunded by using the form JKED 2.
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
Hai... I am confuse with all credit note also.
Invoice issued before 1/4/15, Return after 1/4/15
1. No GST will incur right? (no sales tax of that material before)
Invoice issued 3/4/15 , Return 10/5/15
1. What is Credit note's exchange rate? Follow original invoice exchange rate or return date? (Invoice is USD currency)
Hope can get the answer.
thank you
Invoice issued before 1/4/15, Return after 1/4/15
1. No GST will incur right? (no sales tax of that material before)
Invoice issued 3/4/15 , Return 10/5/15
1. What is Credit note's exchange rate? Follow original invoice exchange rate or return date? (Invoice is USD currency)
Hope can get the answer.
thank you
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
Invoice issued before 1/4/15, Return after 1/4/15
1. No GST will incur right? (no sales tax of that material before)
The Act is actually silent on the issue... but it is ridiculous to include a GST charge on goods return when there was no such charge originally imposed.
Invoice issued 3/4/15 , Return 10/5/15
1. What is Credit note's exchange rate? Follow original invoice exchange rate or return date? (Invoice is USD currency)
This is an accounting question, right ? I believe it is covered under FRS121. If I am not mistaken, monetary transactions are converted at spot rate (or average rate) at the date of the transaction. Sale is a monetary transaction and so is stock return. So, these separate transactions should be converted at the spot rate prevailing on the respective transaction dates.
1. No GST will incur right? (no sales tax of that material before)
The Act is actually silent on the issue... but it is ridiculous to include a GST charge on goods return when there was no such charge originally imposed.
Invoice issued 3/4/15 , Return 10/5/15
1. What is Credit note's exchange rate? Follow original invoice exchange rate or return date? (Invoice is USD currency)
This is an accounting question, right ? I believe it is covered under FRS121. If I am not mistaken, monetary transactions are converted at spot rate (or average rate) at the date of the transaction. Sale is a monetary transaction and so is stock return. So, these separate transactions should be converted at the spot rate prevailing on the respective transaction dates.
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
Joseph thanks of your reply.
Refer the 2nd question. How about GST?
Example: Invoice 3/4/15 we using ex-rate 3.7 and GST also @rate 3.7, Return 10/5/15 Credit Note and GST rate should follow original or spot rate?
Refer the 2nd question. How about GST?
Example: Invoice 3/4/15 we using ex-rate 3.7 and GST also @rate 3.7, Return 10/5/15 Credit Note and GST rate should follow original or spot rate?
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
Use the spot rate.
If you use the original exchange rates and the returns referred to different batches of stocks received under different invoices, you will have a headache computing the GST amount in Ringgit.
If you use the original exchange rates and the returns referred to different batches of stocks received under different invoices, you will have a headache computing the GST amount in Ringgit.
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
BTW, why is there a GST? Aren't your exports supposed to be zero-rated?
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
Is local sales.. we have some local customer using the USD currency.
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
That is the reason we very concern about the ex-change rate issue. And we just know that, all invoice bill to customer is follow daily selling rate ...but purchase/import material is using weekly customer rate.
It is hard for us apply in our system.
It is hard for us apply in our system.
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
Local sales designated in USD... I see.
Use the exchange rates used by the Customs for your imports, if possible.
Use the exchange rates used by the Customs for your imports, if possible.
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
Sorry, I have another question.
1.Regarding Free Trade Zone, do we need to replace the Commercial Invoice to Tax Invoice ?
2.If we use Tax Invoice, what Ex-change rate we should use? Custom Weekly Ex-change rate or Daily?
1.Regarding Free Trade Zone, do we need to replace the Commercial Invoice to Tax Invoice ?
2.If we use Tax Invoice, what Ex-change rate we should use? Custom Weekly Ex-change rate or Daily?
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
1.Regarding Free Trade Zone, do we need to replace the Commercial Invoice to Tax Invoice ?
This is a very vague question... is your company in FTZ or your supplier/customer in FTZ?
As long as your company is registered for GST purpose, you have to issue Tax Invoice for your taxable supply.
2.If we use Tax Invoice, what Ex-change rate we should use? Custom Weekly Ex-change rate or Daily?
If the exchange rate is stated in Customs' K Form, use that rate. Does Customs provide daily exchange rates?
Customs' weekly exchange rates: http://tariff.customs.gov.my/FOREX/
This is a very vague question... is your company in FTZ or your supplier/customer in FTZ?
As long as your company is registered for GST purpose, you have to issue Tax Invoice for your taxable supply.
2.If we use Tax Invoice, what Ex-change rate we should use? Custom Weekly Ex-change rate or Daily?
If the exchange rate is stated in Customs' K Form, use that rate. Does Customs provide daily exchange rates?
Customs' weekly exchange rates: http://tariff.customs.gov.my/FOREX/
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
Sorry joseph my question is unclear...
My company is outside Free Trade Zone. Now we are supplying our material to Free Trade Zone.
When we issue Tax Invoice to Free Trade Zone customer, can we using daily ex-change rate bill to them?
I am confuse because material we send to them(Free Trade Zone Customer) need to do custom clearance.
My company is outside Free Trade Zone. Now we are supplying our material to Free Trade Zone.
When we issue Tax Invoice to Free Trade Zone customer, can we using daily ex-change rate bill to them?
I am confuse because material we send to them(Free Trade Zone Customer) need to do custom clearance.
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
Section 162 (a) of the GST Act 2014: Goods imported into free commercial zone is not subject to GST provided that they are for commercial or retail trade activities. Not sure - but I think it is zero-rated. If your invoice contains only zero-rated supply, then issue normal (commercial) invoice will do.
Yes, you can use daily exchange rates to bill them.
Please refer to DG's Panel Decision 1/2014: http://gst.customs.gov.my/en/rg/Pages/rg_fai.aspx
Yes, you can use daily exchange rates to bill them.
Please refer to DG's Panel Decision 1/2014: http://gst.customs.gov.my/en/rg/Pages/rg_fai.aspx
joseph- Posts : 277
Join date : 2014-09-25
Re: Issuance of CN on 1/4/15 for Cancellation
Thank you very much Josph
hueyhwayong87- Posts : 7
Join date : 2015-03-27
Re: Issuance of CN on 1/4/15 for Cancellation
Hi
Just wish to check.
If invoice issued on 31/3/15, customer return the stock and ask for replacement on 5/4/15. Should we issue CN on 5/4/15 and reissue invoice for replacement of goods without GST?
Thank you.
Just wish to check.
If invoice issued on 31/3/15, customer return the stock and ask for replacement on 5/4/15. Should we issue CN on 5/4/15 and reissue invoice for replacement of goods without GST?
Thank you.
emhan- Posts : 20
Join date : 2015-02-24
Re: Issuance of CN on 1/4/15 for Cancellation
If you re-issue invoice post-GST, you may have to charge GST. Better to just replace the stocks without issuing CN and subsequent re-billing.
joseph- Posts : 277
Join date : 2014-09-25
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