Advanced Taxation

Sales & Service Tax chapter

A. Ernie Sdn Bhd (ESB) has been manufacturing processed food since 1974 and is registered for sales tax purposes. ESB charges a 10% mark-up on the costs and overheads of its products. ESB closes its accounts annually on 31 December. Details relating to a sale made to a customer, Syamel Sdn Bhd (SSB), are as follows: air Date invoice issued: Date goods delivered: Date full payment received: Total direct manufacturing cost Total overhead cost 19 January 2021 28 December 2020 13 March 2021 RM60,000 RM40,000 REQUIRED: (a) Calculate the sales tax due on ESB's sale to SSB under the Sales Tax Act 2018. (3 Marks) (b) State in which taxable period the sales to SSB should be recorded. (1 Marks) Determine the due date for ESB to remit the sales tax for the taxable period to Royal Malaysian Custom Department. (1 Marks)