(a) During the year 2020, Excel Consulting Sdn Bhd (service tax registrant) sends its staff to China to provide consultancy services to a Malaysian company undertaking a project in China. Excel Consulting Sdn Bhd received RM 500,000 for the services. In addition, Excel Consulting performed services to a company in Langkawi and collected RM 20,000 in fees.

Required: Explain, with reasons, whether the above services are subjected to service tax. (6 marks)

(b) The tax authorities may consolidate 2 or more businesses if the intention of the formation was to avoid service tax registration.

Required: Describe the criteria used to determine such intention.