Question
Sales Tax and Service Tax 2018 Kian Joo Paper Bhd is a company that its main activities are manufacture and distribution of multi-ply paper (Tariff
Sales Tax and Service Tax 2018
Kian Joo Paper Bhd is a company that its main activities are manufacture and distribution of multi-ply paper (Tariff code 4802). The company has been incorporated since 1 February 2020 and close its financial year to 31 Decemberevery year. The following are details of the company turnover since the date of incorporation:
1 February 2020 to 31 December 2020
Turnover (RM)
January
10,500
February
15,000
March
30,000
April
45,000
June
60,000
July
70,000
August
85,000
September
80,000
October
95,500
November
135,600
December
225,000
Kian Joo Paper Bhd also has another subsidiary company, Power Ink Sdn Bhd that manufacture drawing ink (Tariff code: 3215) for local as well as international market. The followings are details of the turnover for Power Ink Sdn Bhd for financial year ended 31 December 2020:
Turnover (RM)
January
30,450
February
38,400
March
45,350
April
50,550
June
60,450
July
70,500
August
80,000
September
90,000
October
20,000
November
150,500
December
200,000
The management of Kian Joo has sought your advice for both Kian Joo Paper Bhd and Power Ink Sdn Bhd, in relation to the registration for sales tax in accordance to Sales Tax Act, 2018. The followings need to be clarified to the management of Kian Joo:
- Whether Kian Joo Paper Bhd and Power Ink Sdn Bhd can be consider as manufacturer as define by the Act.
- Whether Kian Joo and Power Ink must register themselves for sales tax purpose.
- If they (Kian Joo and Power Ink) must register for sales tax, advise when the company is liable to register.
- The management of Kian Joo plan to go for voluntary registration for both Kian Joo Paper Bhd and Power Ink Sdn Bhd on October 2020. Please advise whether Kian Joo and Paper Ink can apply for voluntary registration for sales tax license. Explain your answer.
Sales Tax and Service Tax 2018
Kian Joo Paper Bhd is a company that its main activities are manufacture and distribution of multi-ply paper (Tariff code 4802). The company has been incorporated since 1 February 2020 and close its financial year to 31 Decemberevery year. The following are details of the company turnover since the date of incorporation:
1 February 2020 to 31 December 2020 |
| Turnover (RM) |
January |
| 10,500 |
February |
| 15,000 |
March |
| 30,000 |
April |
| 45,000 |
June |
| 60,000 |
July |
| 70,000 |
August |
| 85,000 |
September |
| 80,000 |
October |
| 95,500 |
November |
| 135,600 |
December |
| 225,000 |
Kian Joo Paper Bhd also has another subsidiary company, Power Ink Sdn Bhd that manufacture drawing ink (Tariff code: 3215) for local as well as international market. The followings are details of the turnover for Power Ink Sdn Bhd for financial year ended 31 December 2020:
|
| Turnover (RM) |
January |
| 30,450 |
February |
| 38,400 |
March |
| 45,350 |
April |
| 50,550 |
June |
| 60,450 |
July |
| 70,500 |
August |
| 80,000 |
September |
| 90,000 |
October |
| 20,000 |
November |
| 150,500 |
December |
| 200,000 |
The management of Kian Joo has sought your advice for both Kian Joo Paper Bhd and Power Ink Sdn Bhd, in relation to the registration for sales tax in accordance to Sales Tax Act, 2018. The followings need to be clarified to the management of Kian Joo:
- Whether Kian Joo Paper Bhd and Power Ink Sdn Bhd can be consider as manufacturer as define by the Act.
- Whether Kian Joo and Power Ink must register themselves for sales tax purpose.
- If they (Kian Joo and Power Ink) must register for sales tax, advise when the company is liable to register.
- The management of Kian Joo plan to go for voluntary registration for both Kian Joo Paper Bhd and Power Ink Sdn Bhd on October 2020. Please advise whether Kian Joo and Paper Ink can apply for voluntary registration for sales tax license. Explain your answer.
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