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After securing Tango Pty Ltd as a client, STS Sdn Bhd decided to set-up an office in Australia. It rented a commercial property in May

After securing Tango Pty Ltd as a client, STS Sdn Bhd decided to set-up an office in Australia. It rented a commercial property in May 2021 and paid an equivalent of RM2,000 as monthly rental for the commercial property. In addition, STS Sdn Bhd engaged an outsourcing service provider in June 2021 and pays a monthly equivalent of RM3,000 for employment and payroll services. 

 

Required: Discuss the implications of service tax on these payment

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