Question 3 (10 marks)

Explain, with reasons, whether sales and services tax (SST) is applicable and/or claimable for each of the following transactions, and where SST is applicable, compute the output tax arising.

(a) Jelas Sdn Bhd (JSB), a SST registrant, received an invoice from a Singapore company for hotel accommodation costs equivalent to RM1,000, incurred when one of JSBs employees attended a conference in Singapore.

(b) Jerry Sdn Bhd (JSB) is not registered for SST purposes. JSB receives an invoice for an amount equivalent to RM4,000 from Lei Wei Corporation, an overseas supplier, for design services relating to JSBs products.

(c) Tulus Sdn Bhd, a SST registrant, imports a machine to Malaysia at a cost of USD10,000. The machine is used to manufacture pipes for resale (which is a taxable supply). On the date of importation, the foreign exchange rate per the Royal Malaysian Customs was RM4 for USD1, and the commercial bank exchange rate was RM390 for USD1.

(d) Ply Sdn Bhd, a SST registrant, gave a cash reward of RM3,000 to one of its employees for his service excellence during the companys annual dinner.

(e) Berry Sdn Bhd (BSB), a SST registrant, makes wholly taxable supplies of stationery. BSB received an invoice from their auditors for RM10,600 inclusive of SST.

(Total: 10 marks)