(a) Bright Sdn Bhd (BSB) is a tax resident manufacturing company in Johor, which involves in ceramic tiles. Currently, BSB‟s annual sales turnover has been forecasted to be around RM 300,000 for the next twenty-four (24) months. BSB plans to import special class of granite and carry out a change in nature and quality of the materials by glazing them before sales. However, BSB is doubt on the above activities whether it falls into the scope of manufacturing activities for the sales tax purpose.

Required:

(i) Explain whether Bright Sdn Bhd (BSB)‟s activities above will be regarded as falling within the scope of manufacturing activities for sales tax purpose. (2 marks)

(ii) Advice whether BSB is required to be registered for sales tax purposes based on the current and forecast annual sales turnover. (2 marks)