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1. Explanation
During Goods Receive Note (GRN), select Tax Code = IM, but make sure the Tax Rate = 0
- Note 1: It is important to make sure the Tax Rate is set at 0, because the Supplier Invoice amount from overseas supplier is EXCLUSIVE of GST amount.
- Note 2: Tax Code configuration will have 6% for IM Tax Code. So during GRN, if you select the IM code set from drop-down list the tax rate will automatically be 6%. Thus, it is advisable to edit the Supplier first, set IM as the supplier's Default Tax Code, but edit the Tax Rate to 0%. This way, whenever the supplier is selected at the GRN, the items will automatically be charged with Tax Code IM but with Tax Rate 0%
GST on imported goods = (Invoice amount + Import Duty + Excise Duty) * GST rate
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Ref : Page 18 [[http://gst.customs.gov.my/en/rg/SiteAssets/accounting_software/GUIDE_ON_ACCOUNTING_SOFTWARE_02MAC2017.pdf]]
100. When a person receives a supply of imported services for the purpose of business, he is treated as if he is making and receiving the supply. Since he is treated as making a supply, he is required to account GST on the supply of imported services as his output tax.
101. If the imported services are used for making taxable supplies, he is entitled to claim the GST incurred as his input tax. If the supply is used for making exempt supplies, he is not entitled to claim the GST as his input tax. If the imported services are used for making both taxable and exempt supplies, then he has to apportion the GST incurred and claim the proportion of GST on imported services used for making taxable supplies.
102. If the recipient is a taxable person, he has to declare both input tax and output tax in his GST return and pay the tax not later than the last day of the following month after the end of his taxable period where the payment for the supply of imported services is made to the supplier.
103. If the recipient is not a taxable person, he is still required to account the GST as output tax and declare the tax in a prescribed form (Form GST-04). The tax has to be paid not later than the last day of the subsequent month from the month in which the payment of supply is made.
Latest GST guide:
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. Guide
Step 1 : Supplier > Maintenance > Create / Edit Supplier
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