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a = ( t – o ) / ( s - o) x 100%
| a | is the recoverable percentage of residual input tax, rounded off to the nearest 2 decimal places. |
| t | is the total value (exclusive of GST) of taxable supplies made in the taxable period |
| o | is the total value (exclusive of GST) of all excluded supplies |
| s | is the total value of all supplies made in the taxable period |
Example: 1
Mix Co. Sdn. Bhd., whose current tax year ends on 31st December 2016, has in his taxable period of May 2016, made some mixed supplies and at the same time incurred residual input tax as follows:
| RM | ||
| s | Value of all supplies (exclusive of tax) | 240,000.00 |
| t | Value of all taxable supplies, exclusive of tax | 200,000.00 |
| o | Value of a capital goods disposed off, (exclusive of tax) | 50,000.00 |
| o | Value of self-supplies, exclusive of tax | 20,000.00 |
| e | Value of exempt supplies | 40,000.00 |
| Residual input tax incurred | 10,000.00 |
(a) Mix Co. Sdn. Bhd. residual input tax recovery percentage for the taxable period of May 2016 is calculated as follows:
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(c) Mixed Co. Sdn. Bhd. can only claim RM7,647.00 out of the RM10,000.00 of residual input tax incurred by him in that taxable period.
Guide
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Part A: Filing Residual Input Tax
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IRR formula :
* DMR = (ESN43 + ES) / (FR + SR + ZR + DS + OS + RS + GS + ESN43 + ES) ==> Use the Amt Excluding Tax for these Tax Codes
* DMR Status = If ( DMR<=0.05 && (ESN43 + ES)<=5000 ) then QUALITY, else NOT QUALITY
* IRR = If ( DMR Status = QUALITY) then 1
Else (FR + SR + ZR + DS + OS + RS + GS) / (SR + ZR + DS + OS + RS + GS + ESN43 + ES) ==> Use the Amt Excluding Tax for these Tax Codes
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- When filing documents with TX-RE tax code, click Edit link. A popup like the one below will appear.
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- Key in the pre-calculated IRR, then click Save, and proceed to file the document as per normal
- Once the document is filled, a Journal will be created to account for the difference in the residual input tax claimed as compared the the input tax amount originally calculated in the document
Part B : Report for Residual Input Tax Claimed ( Extended Module > Malaysia GST > Reports > Input Tax Credit Claimed )
In this report, you will be able to list all documents with TX-RE tax code which have been filed. From here you will be able to check the IRR and ITC (Input Tax Credit) claimed based on the IRR.
