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Goods Sell To Labuan

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Goods Sell To Labuan

Post by Evon on Fri Mar 27, 2015 1:24 pm

Hi,

Our company located in Selangor purchase goods from local supplier and resell the goods to a customer located in Labuan. The goods is deliver to Labuan via courier service.
I wish to check:

1. The goods sold to customer in Labuan subject to 6% GST? or zero rated?
2. Can we claim input tax on 6% GST paid to local supplier?

Evon

Posts : 27
Join date : 2015-03-13

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Re: Goods Sell To Labuan

Post by joseph on Fri Mar 27, 2015 2:27 pm

1. The goods sold to customer in Labuan subject to 6% GST? or zero rated?
Supply of goods from Malaysia (PCA) to a designated area (Langkawi, Labuan, or Tioman) is zero-rated, while supply of services is standard-rated.

2. Can we claim input tax on 6% GST paid to local supplier?
Yes, you can.

_________________


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

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Re: Goods Sell To Labuan

Post by bathu14 on Sat Mar 28, 2015 6:18 am

A KL based company operating in Sabah is supplying scaffolding to a customer in Labuan on a rental basis on the basis of a fixed rate per unit quantity. My question is (a)whether the rental is treated as an operating lease altho' there may be no element of interest in the fixed rate (b) whether the rental like an operating lease amounts to supply of service and so is std rated?

bathu14

Posts : 9
Join date : 2015-03-11

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Re: Goods Sell To Labuan

Post by joseph on Sat Mar 28, 2015 10:29 am

Looks like an operating lease... without an option to purchase. Yes it is a supply of services from PCA to DA (not the other way) and is standard-rated.

_________________


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
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Re: Goods Sell To Labuan

Post by bathu14 on Sat Mar 28, 2015 11:36 pm

Thanks Joseph

bathu14

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Re: Goods Sell To Labuan

Post by bathu14 on Sat Mar 28, 2015 11:44 pm

If a company(contractor) is located in Selangor and takes on a construction job in Labuan can the supply be broken up into a supply of goods and supply of services? The fact is that in this construction job, the contractor supplies building materials and equipment (as opposed to materials) and also carries out the construction work. And if the supply can be broken into goods and services, then contractor need not levy GST on the goods as they are zero rated(PCA to DA) and only levy GST on the services portion of the construction job. Please advise if my reasoning is right.

bathu14

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Re: Goods Sell To Labuan

Post by joseph on Mon Mar 30, 2015 10:58 am

Yes, I will do the same. We normally do separate supply of materials from services rendered in our BQ, right?

_________________


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
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Re: Goods Sell To Labuan

Post by joseph on Mon Mar 30, 2015 11:07 am

joseph wrote:Yes, I will do the same. We normally do separate supply of materials from services rendered in our BQ, right?

To avoid paying GST altogether, consider registering a branch office in DA and ensure that all the services and documentations are provided by this local branch, e.g. staff must be local branch staff. Tax Invoices must be issued from this branch office.

_________________


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
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