Exercise Chapter 1: Indirect Taxes

A.For the purpose of service tax:

(i)State the minimum annual sales turnover threshold for each of the following:

(1)The provision for consultancy and management services

(2)The provision for food and beverage services

(3)The provision for credit card or charge card services

(ii)State three (3) situations under which the service tax registration shall be cancelled by the DG of RMCD.

B.Liplap Sdn Bhd, a company licensed for sales tax purposes, issued invoices and received payments as follows:

Date invoice issued

Date payment received

Amount (RM)

11 September 2018

9 October 2018

6,000

23 October 2018

2 November 2018

20,000

6 November 2018

8 November 2018

10,000

20 November 2018

11 December 2018

5,000

Required:

(i)Compute the sales tax payable by Liplap Sdn Bhd for the taxable period of October and November 2018.

(ii)Based on the sales tax payable for the taxable period as computed in (i) above, determine the penalty rate and compute the penalty due by Liplap Sdn Bhd if the sales tax was not paid until 30 April 2019.